EconPapers    
Economics at your fingertips  
 

Private Information, Strategic Behavior, and Efficiency in Cournot Markets

Xavier Vives

RAND Journal of Economics, 2002, vol. 33, issue 3, 361-376

Abstract: When analyzing a Cournot market with strictly convex costs dependent on a private information parameter, do we err more by ignoring market power or by ignoring the impact of incomplete information? Is the welfare loss at the market outcome driven by private information or by market power? The answer to both questions is that in large enough markets, abstracting from market power provides a much better approximation than abstracting from private information. Let n index the size of the market and the (free entry) number of firms. Then the effect of market power (private information) is of the order of 1/n (1/√n) for prices and 1/n

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (56)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rje:randje:v:33:y:2002:i:autumn:p:361-376

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().

 
Page updated 2025-05-16
Handle: RePEc:rje:randje:v:33:y:2002:i:autumn:p:361-376