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On the existence of Cournot equilibrium. (English) Zbl 0547.90011
Summary: This paper examines the existence of n-firm Cournot equilibrium in a market for a single homogeneous commodity. It proves that if each firms’s marginal revenue declines as the aggregate output of other firms increases (which is implied by concave inverse demand) then a Cournot equilibrium exists, without assuming that firms have nondecreasing marginal cost or identical technologies. Also, if the marginal revenue condition fails at a ”potential optimal output”, there is a set of firms such that no Cournot equilibrium exists. The paper also contains an example of nonexistence with two nonidentical firms, each with constant returns to scale production.

91B24 Microeconomic theory (price theory and economic markets)
91B50 General equilibrium theory
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