Perfect competition in an oligopoly (including bilateral monopoly)

B-Tier
Journal: Games and Economic Behavior
Year: 2009
Volume: 65
Issue: 1
Pages: 124-141

Authors (2)

Dubey, Pradeep (Stony Brook University - SUNY) Sondermann, Dieter (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that if limit orders are required to vary smoothly, then strategic (Nash) equilibria of the double auction mechanism yield competitive (Walras) allocations. It is not necessary to have competitors on any side of any market: smooth trading is a substitute for price wars. In particular, Nash equilibria are Walrasian even in a bilateral monopoly.

Technical Details

RePEc Handle
repec:eee:gamebe:v:65:y:2009:i:1:p:124-141
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25