Existence of Consistent Conjectures: Reply
Abstract
Arthur Robson's excellent comment introduces a new formulation of the problem of consistent conjectures. My reply uses the new formulation in order to resolve Robson's troubling example of nonexistence, and to make the problem clearer. It also shows why my original approach was sensible only for the linear demand curve case. A slightly more general approach used here has consistent conjectures in Robson's quadratic inverse demand example.
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