Surplus sharing in Cournot oligopoly

Daniele Condorelli () and Balázs Szentes ()
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Daniele Condorelli: Department of Economics, University of Warwick
Balázs Szentes: Department of Economics, London School of Economics

Theoretical Economics, 2022, vol. 17, issue 3

Abstract: We characterize equilibria of oligopolistic markets where identical firms with constant marginal cost compete a' la Cournot. For given maximal willingness to pay and maximal total demand, we first identify all combinations of equilibrium consumer surplus and industry profit that can arise from arbitrary demand functions. Then, as a further restriction, we fix the average willingness to pay above marginal cost (i.e., first-best surplus) and identify all possible triples of consumer surplus, industry profit and deadweight loss.

Keywords: Cournot; monopoly (search for similar items in EconPapers)
JEL-codes: D42 D43 (search for similar items in EconPapers)
Date: 2022-07-14
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Citations: View citations in EconPapers (4)

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