Competition for market share or for market size: oligopolistic equilibria with varying competitive toughness

Claude d'Aspremont, Rodolphe Dos Santos-Ferreira and Louis-André Gérard-Varet
Authors registered in the RePEc Author Service: Rodolphe Dos Santos Ferreira

No 2003010, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We propose a comprehensive concept of oligopolistic equilibrium, allowing for a parametrized continuum of competition regimes, with each firm setting simultaneously both its price and its quantity and facing two constraints: one relative to its share ofthe market, the other relative to the size of the market. The type of solution (i.e. the competition regime) will vary according to the values of the Lagrange multipliers associated with each of these two constraints. In the homogeneous case, the set of oligopolistic equilibria will be shown to include the Cournot solution at tone extreme, when competition is extremely soft, as well as the competitive equilibrium at the other extreme, when competition is extremely tough. The set of equilibria may be characterized as supply function equilibria, with firms strategy spaces restricted to the set of non-decreasing supply functions, or, alternatively, as a selected subset of the outcomes obtained by conjectural variations of a particular type (the compensating ones). The proposed concept of oligopolistic equilibrium is also applicable to an industry supplying a group of differentiated products, the homogeneous product being the limit case corresponding to perfect substitutability.

Date: 2003-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://sites.uclouvain.be/core/publications/coredp/coredp2003.html (text/html)

Related works:
Journal Article: COMPETITION FOR MARKET SHARE OR FOR MARKET SIZE: OLIGOPOLISTIC EQUILIBRIA WITH VARYING COMPETITIVE TOUGHNESS (2007)
Working Paper: Competition for market share or for market size: oligopolistic equilibria with varying competitive toughness (2007)
Working Paper: Competition for market share or for market size: Oligopolistic equilibria with varying competitive toughness (2004)
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:cor:louvco:2003010

Access Statistics for this paper

More papers in LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Alain GILLIS ().