The road less travelled : oligopoly and competition policy in general equilibrium
|Title:||The road less travelled : oligopoly and competition policy in general equilibrium||Authors:||Neary, J. Peter||Permanent link:||http://hdl.handle.net/10197/1259||Date:||Oct-2002||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.||Funding Details:||Economic and Social Research Council||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP02/22||Keywords:||Competition policy; Dixit-Stiglitz preferences; General equilibrium; GOLE (General Oligopolistic Equilibrium); Oligopoly||Subject LCSH:||Competition--Government policy
|Other versions:||http://www.ucd.ie/economics/research/papers/2002/WP02.22.pdf||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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