Publication: Differentiable comparative statics with payoff functions not differentiable everywhere
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Publication date
2001
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Elsevier
Abstract
In this note we consider Cournot oligopoly. Due to the consideration of several consumers and/ or technologies, the profit function is not differentiable everywhere. We show that Cournot equilibrium never
occurs in outputs where profit functions are not-differentiable. This result validates the procedure of differentiating profit functions to perform comparative statics in models where profit functions are not
differentiable everywhere.
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Keywords
Comparative statics, Differentiability
Bibliographic citation
Economics Letters. 2001, vol. 72, nº 3, p. 397-401