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||Keywords:||Competition policy;Dixit-Stiglitz preferences;General equilibrium;GOLE (General Oligopolistic Equilibrium);Oligopoly||Subject LCSH:||Competition--Government policy
|Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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