EconPapers    
Economics at your fingertips  
 

The road less travelled: oligopoly and competition policy in general equilibrium

J. Peter Neary

No 200222, Working Papers from School of Economics, University College Dublin

Abstract: I review previous approaches to modelling oligopoly in general equilibrium, and propose a new view which in principle overcomes their deficiencies: modelling firms as large in their own market but small in the economy as a whole. Implementing this approach requires a tractable specification of preferences. Dixit-Stiglitz preferences (which imply iso-elastic perceived demand functions) could be used, but "continuum-quadratic" preferences (which imply linear perceived demand functions) are more convenient. To illustrate their usefulness, I construct a simple closed-economy model of oligopoly in general equilibrium and derive some surprising implications for competition policy.

Keywords: Competition policy; Dixit-Stiglitz preferences; General equilibrium; GOLE (General Oligopolistic Equilibrium); Oligopoly; Competition--Government policy; Equilibrium (Economics); Oligopolies--Econometric models; Antitrust law (search for similar items in EconPapers)
JEL-codes: D50 L13 L40 (search for similar items in EconPapers)
Date: 2002-10
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://hdl.handle.net/10197/1259 First version, 2002 (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:ucn:wpaper:200222

Access Statistics for this paper

More papers in Working Papers from School of Economics, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Nicolas Clifton (nicolas.clifton@ucd.ie).

 
Page updated 2024-07-10
Handle: RePEc:ucn:wpaper:200222