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The road less travelled : oligopoly and competition policy in general equilibrium
Author(s)
Date Issued
2002-09-25
Date Available
2010-02-10T17:16:56Z
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.
Type of Material
Working Paper
Publisher
University College Dublin. Institute for the Study of Social Change (Geary Institute)
Series
ISSC Discussion Paper Series
WP 2002/06
Classification
D50
L13
L40
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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