Econometrica: May 1985, Volume 53, Issue 3
Existence of Cournot Equilibrium in Large Markets
Jean Fraysse, Rodrigo BamonThis paper examines the existence conditions of an oligopolistic equilibrium. We use the Cournot concept (the strategies are the production levels) in a partial equilibrium framework. We allow for U-shaped average cost curves and nonidentical firms. We show that an equilibrium exists if the demand is large. The main part of the proof is a new fixed point theorem for a class of noncontinuous mappings.
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