Imperfect Competition ˆ la Negishi also with Fixed Costs

P•erre DEHEZ, Jacques H. Dreze and Takashi SUZUKI
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P•erre DEHEZ: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)
Takashi SUZUKI: Meiji-Gakuin University - Tokyo - JAPAN

No 2002044, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: The paper studies equilibria for economies with imperfect competition and non-convex technologies. Following Negishi, firms maximise profits under downward-sloping perceived demand functions. NegishiÕs assumptions, in particular the assumption of a single monopolistic competitor in each market, are relaxed. Existence of equilibria is obtained, under otherwise standard assumptions, for productions sets defined in each firm by the union of a convex technology and a technology subject to fixed costs. In the light of a counterexample, it is assumed that fixed factors are distinct from variable factors. Technically, the proof rests on pricing rules.

Keywords: Imperfect competition; fixed cost; general equilibrium; perceived demand; pricing rules (search for similar items in EconPapers)
JEL-codes: D43 D51 L13 (search for similar items in EconPapers)
Date: 2002-12-01
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Related works:
Working Paper: Imperfect competition à la Negishi also with fixed costs (2003)
Journal Article: Imperfect competition a la Negishi, also with fixed costs (2003)
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Persistent link: http://EconPapers.repec.org/RePEc:ctl:louvir:2002044

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