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The road less travelled : oligopoly and competition policy in general equilibrium |
Neary, J. Peter
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I review previous approaches to modelling oligopoly in general equilibrium, and propose
a new view which in principle overcomes their deficiencies: modelling firms as large in their own market but small in the economy as a whole. Implementing this approach requires a tractable specification of preferences. Dixit-Stiglitz preferences (which imply iso-elastic perceived demand functions) could be used, but "continuum-quadratic" preferences (which imply linear perceived demand functions) are more convenient. To illustrate their usefulness,
I construct a simple closed-economy model of oligopoly in general equilibrium and derive
some surprising implications for competition policy. Economic and Social Research Council
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Keyword(s):
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Competition policy; Dixit-Stiglitz preferences; General equilibrium; GOLE (General Oligopolistic Equilibrium); Oligopoly; D50; L13; L40; Competition--Government policy; Equilibrium (Economics); Oligopolies--Econometric models; Antitrust law |
Publication Date:
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2009 |
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Type:
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Working paper |
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Peer-Reviewed:
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Unknown |
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Language(s):
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English |
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Institution:
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University College Dublin |
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Publisher(s):
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University College Dublin. School of Economics |
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File Format(s):
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other; application/pdf |
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First Indexed:
2012-08-25 05:22:57 Last Updated:
2018-10-11 15:45:09 |
