On the Effects of Entry in Cournot Markets

S-Tier
Journal: Review of Economic Studies
Year: 2000
Volume: 67
Issue: 2
Pages: 235-254

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

In the framework of symmetric Cournot oligopoly, this paper provides two minimal sets of assumptions on the demand and cost functions that imply respectively that, as the number of firms increases, the minimal and maximal equilibria lead to (i) decreasing industry price and increasing or decreasing per-firm output; and (ii) increasing industry price (and decreasing per firm output.) In both cases, per-firm profits are decreasing. The analysis relies crucially on lattice-theoretic methods and yields general, unambiguous and easily interpretable conclusions of a global nature. As a byproduct of independent interest, new insight into the existence of Cournot equilibrium is developed.

Technical Details

RePEc Handle
repec:oup:restud:v:67:y:2000:i:2:p:235-254.
Journal Field
General
Author Count
2
Added to Database
2026-01-24