A note on price-taking and price-making behaviours in pure exchange economies

Ludovic Julien () and Fabrice Tricou

No 2006-3, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This paper explores the rationale of price-taking and price-making behaviours in the context of Walrasian and Cournotian pure exchange economies. Beside the influence of the number of agents, we underline the role of the structure of preferences in the definition and in the working of market power. Through three equilibrium variations of the same basic economy, we obtain several results about price manipulation, about asymptotic identifications for large economies and for degenerate preferences, and about welfare comparisons. Perfect competition does not only correspond to the case of large economies, but may also concern economies where fundamental market powers are more or less equivalent.

JEL-codes: D43 D51 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2006
New Economics Papers: this item is included in nep-com and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://economix.fr/pdf/dt/2006/WP_EcoX_2006-3.pdf (application/pdf)

Related works:
Working Paper: A note on price-taking and price-making behaviours in pure exchange economies (2006)
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:drm:wpaper:2006-3

Access Statistics for this paper

More papers in EconomiX Working Papers from University of Paris Nanterre, EconomiX Contact information at EDIRC.
Bibliographic data for series maintained by Valerie Mignon ( this e-mail address is bad, please contact ).