Aggregation with Cournot Competition: the Le Chatelier Samuelson Principle

Bertrand Koebel and Francois Laisney

Annals of Economics and Statistics, 2014, issue 115-116, 343-360

Abstract: This paper studies the aggregate substitution and expansion effects triggered by changes in input prices in a context where firms supply a homogeneous commodity and compete in quantities à la Cournot. We derive a sufficient condition for the existence of a Cournot equilibrium and show that this condition also ensures that the Le Chatelier-Samuelson principle is satisfied in the aggregate at the Cournot equilibrium, although it may not be satisfied at the firm level.

Date: 2014
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Working Paper: Aggregation with Cournot competition: the Le Chatelier Samuelson principle (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2014:i:115-116:p:343-360

DOI: 10.15609/annaeconstat2009.115-116.343

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