On the Equilibrium Uniqueness in Cournot Competition with Demand Uncertainty

Stefanos Leonardos and Costis Melolidakis

Papers from arXiv.org

Abstract: We revisit the linear Cournot model with uncertain demand that is studied in Lagerl\"of (2006)* and provide sufficient conditions for equilibrium uniqueness that complement the existing results. We show that if the distribution of the demand intercept has the decreasing mean residual demand (DMRD) or the increasing generalized failure rate (IGFR) property, then uniqueness of equilibrium is guaranteed. The DMRD condition implies log-concavity of the expected profits per unit of output without additional assumptions on the existence or the shape of the density of the demand intercept and, hence, answers in the affirmative the conjecture of Lagerl\"of (2006)* that such conditions may not be necessary. *Johan Lagerl\"of, Equilibrium uniqueness in a Cournot model with demand uncertainty. The B.E. Journal in Theoretical Economics, Vol. 6: Iss 1. (Topics), Article 19:1--6, 2006.

Date: 2019-06, Revised 2021-07
New Economics Papers: this item is included in nep-com and nep-gth
References: Add references at CitEc
Citations:

Published in The B.E. Journal of Theoretical Economics, vol. 20(2), pp. 20190131, (2020)

Downloads: (external link)
http://arxiv.org/pdf/1906.03558 Latest version (application/pdf)

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:arx:papers:1906.03558

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators (help@arxiv.org).