MARKET PRICE MECHANISMS AND STACKELBERG GENERAL EQUILIBRIA: AN EXAMPLE |
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Authors: | Ludovic A. Julien Fabrice Tricou |
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Affiliation: | Université de Paris Ouest‐Nanterre La Défense, France |
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Abstract: | This paper considers Stackelberg competition in a general equilibrium framework with a productive sector. The working of market power and the configurations of strategic interactions are complexified by the presence of a leader. Two market price mechanisms are studied: one is associated with the Stackelberg–Walras equilibrium and the other is linked to the Stackelberg–Cournot equilibrium. Throughout the example of a two commodity economy, several results are obtained about equilibria mergings and about welfare comparisons. |
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Keywords: | general equilibrium oligopolistic competition welfare D43 D51 |
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