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Market Price Mechanisms and Stackelberg General Equilibria

Ludovic Julien and Fabrice Tricou

No 2008-29, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This paper considers Stackelberg competition in a general equilibrium framework with production. The working of market power and the confi…gurations of strategic interactions are complexi…ed by the presence of an active leader. Two market price mechanisms are here studied: one is associated with the Stackelberg-Walras equilibrium, the other is linked to the Stackelberg-Cournot equilibrium. In the context of an exchange economy with a production sector, several results are obtained about equilibria mergings and about welfare comparisons.

Pages: 17 pages
Date: 2008
New Economics Papers: this item is included in nep-bec, nep-cba, nep-com and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2008-29

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