Comparative Statics in Cournot Free Entry Equilibrium

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Show simple item record Corchón, Luis C. Fradera, I. 2009-03-27T11:58:16Z 2009-03-27T11:58:16Z 2002
dc.identifier.bibliographicCitation Comparative Statics in Cournot Free Entry Equilibrium". Mathematical Social Sciences. 2002, vol. 44, nº 2, p. 155-168
dc.identifier.issn 0165-4896
dc.description.abstract In this paper we study the effects of a change in an exogenous variable (the fixed cost or a parameter in the demand function) on the output and the number of active firms in a Symmetric Cournot Equilibrium with Free Entry (SCEFE). The results obtained here are different from those obtained in the Cournot model with a given number of firms. In particular, an increase in demand might yield a decrease in the output of the industry.We also show that any observation on prices, profits and number of firms is compatible with the assumption that the market is in a SCEFE. If fixed costs can be observed, there is a loose relationship between the profit rate and the number of active firms. This result is used as a warning against the use of the profit rate as a measure of an anticompetitive position and against the Structure–Conduct– Performance paradigm.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Elsevier
dc.rights © 2002 Elsevier Science B.V. All rights reserved
dc.subject.other Entry
dc.subject.other Comparative statics
dc.subject.other Rate of profits
dc.subject.other Anti-trust policy
dc.title Comparative Statics in Cournot Free Entry Equilibrium
dc.type article PeerReviewed
dc.description.status Publicado
dc.subject.jel L13
dc.subject.eciencia Economía
dc.identifier.doi 10.1016/S0165-4896(02)00026-4
dc.rights.accessRights openAccess
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