The effect of economic policy in oligopoly. A variational inequality approach

Giovanni Crespi

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: Directional derivatives are the ideal tool to model simultaneous shifts of the instruments of economic policy. Provided the equilibrium solution of an oligolistic model are differentiable with respect to the parameter, such a problem can be easily solved considering shift in single instruments, i. e. partial derivatives, and then multiplying these derivatives by a vector rapresenting the direction of the simultaneous shifts. However even differentiability of the objective functions may not be enough to guarantee differentiability of the equilibrium. Byformulating an oligopolistic model with transportation costs by variational inequalities, we solve this problem even for non differentiable equilibrium solution.

Keywords: Oligopoly; Parametric Variational Inequality; Sensitivity analysis; Solution differentiability (search for similar items in EconPapers)
Date: 2001-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://wp.demm.unimi.it/files/wp/2001/DEMM-2001_009wp.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to aaa.unimi.it:80 (nodename nor servname provided, or not known) (http://wp.demm.unimi.it/files/wp/2001/DEMM-2001_009wp.pdf [302 Found]--> http://aaa.unimi.it)

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:mil:wpdepa:2001-09

Access Statistics for this paper

More papers in Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano Via Conservatorio 7, I-20122 Milan - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by DEMM Working Papers ( this e-mail address is bad, please contact ).