Review of Economic Studies Vol. 50 No. 4 1983
Competitive Approximation of a Cournot Market
Abstract
Stimulated by the work of Novshek (1980), this paper concerns the accuracy of the competitive approximation to a Cournot market with free entry. Novshek took a static equilibrium approach to the problem. This paper takes a dynamic stochastic approach, one which allows persistent disequilibrium. It is argued that the alternative approach yields similar results with less effort and, in some senses, with greater generality. 1.
- DOI
- 10.2307/2297763
- Volume
- 50
- Issue
- 4
- Pages
- 597
- Sources
- openalex crossref