EconPapers    
Economics at your fingertips  
 

Non-manipulability in Walrasian cost games Marta Faias (1), Emma Moreno-García (1)(2), Mário Rui Páscoa (2) (1) Faculdade de Economia, Universidade Nova de Lisboa, Travessa Estevao Pinto, 1099-032 Lisboa, Portugal (e-mail: mcm@mail.fct.unl.pt; pascoa@fe.unl.pt) (2) Departamento de Economía e Historia Económica, Facultad de Economía y Empresa, Universidad de Salamanca, Edificio F.E.S., Campus Miguel de Unamuno, 37008 Salamanca, Spain (e-mail: emmam@usal.es) Received: 24 December 1999 / Accepted: 18 October 2001 JEL classification: D41, D51 Key words: Perfect competition, monopolistic power, Walrasian equilibrium, thick markets

Mario Pascoa, Emma Moreno-García and Marta Faias

Review of Economic Design, 2002, vol. 7, issue 1, 93-104

Abstract: In this paper, we propose a perfect competition test which checks whether arbitrarily small coalitions of firms, which behave strategically on costs, are able to manipulate prices in their own benefit. We apply this test to economies with a continuum of differentiated producers. We show that, under thickness conditions on preferences, implying a high degree of substitutability among commodities, there is no monopolistic power neither in economies with constant average costs nor in economies with increasing returns. We also give an example of thin markets where monopolistic power prevails.

Keywords: Perfect competition; monopolistic power; Walrasian equilibrium; thick markets (search for similar items in EconPapers)
JEL-codes: D41 D51 (search for similar items in EconPapers)
Date: 2002-09-05
Note: Received: 24 December 1999 / Accepted: 18 October 2001
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.de/link/service/journals/10058/papers/2007001/20070093.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

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:spr:reecde:v:7:y:2002:i:1:p:93-104

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10058

Access Statistics for this article

Review of Economic Design is currently edited by Atila Abdulkadiroglu, Fuhito Kojima and Tilman Börgers

More articles in Review of Economic Design from Springer, Society for Economic Design
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-12-31
Handle: RePEc:spr:reecde:v:7:y:2002:i:1:p:93-104