Imperfect competition à la Negishi also with fixed costs

Pierre Dehez, Jacques H. Dreze and Takashi Suzuki
Additional contact information
Pierre Dehez: University of Louvain
Takashi Suzuki: Meiji-Gakuin University

Microeconomics from EconWPA

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. Negishi's 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 production sets defined in each firm by the union of a convex technology and a technology subjected 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 costs; general equilibrium; perceived demands; pricing rules (search for similar items in EconPapers)
JEL-codes: D43 D51 L13 (search for similar items in EconPapers)
Date: 2003-04-07
Note: Type of Document - pdf; prepared on Tex; pages: 30; figures: included. to appear in JME
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http://129.3.20.41/eps/mic/papers/0304/0304003.pdf (application/pdf)

Related works:
Working Paper: Imperfect Competition ˆ la Negishi also with Fixed Costs (2002)
Journal Article: Imperfect competition a la Negishi, also with fixed costs (2003)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpmi:0304003

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