OPTIMAL RESOURCE ALLOCATION IN GENERAL COURNOTCOMPETITIVE EQUILIBRIUM

Inger Ervik and Christian Soegaard

No 05/13, Working Papers in Economics from University of Bergen, Department of Economics

Abstract: Conventional economic theory stipulates that output in Cournot competition is too low relative to that which is attained in perfect competition. We revisit this result in a General Cournot-competitive Equilibrium model with two industries that di er only in terms of productivity. We show that in general equilibrium, the more ecient industry produces too little and the less ecient industry produces too much compared to an optimal scenario with perfect competition.

Keywords: Cournot oligopoly; GOLE (General Oligopolistic Equilibrium); industrial policy (search for similar items in EconPapers)
JEL-codes: D50 H21 L13 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2013-06-20
New Economics Papers: this item is included in nep-com and nep-ind
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http://ekstern.filer.uib.no/svf/2013/wp5.13.pdf Full text (application/pdf)

Related works:
Working Paper: Optimal Resource Allocation in General Cournot-competitive Equilibrium (2013)
Working Paper: Optimal Resource Allocation in General Cournot-competitive Equilibrium (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:bergec:2013_005

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