Competitive Approximation of a Cournot Market
Review of Economic Studies
1983
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 (4)
- Pages
- 597
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