Abstract
In Chap. 2 the Cournot–Theocharis stability issue, which will be called so, though it was raised 20 years earlier by Palander, was discussed. The problem was that in certain model families increasing competition through adding new competitors destabilised Cournot equilibrium. Accordingly, the idea of a straight path leading from monopoly, over oligopoly, to perfect competition, where profits were eliminated and marginal cost pricing was used, became subject to doubt. What interest do the properties of an equilibrium have, after all, if it becomes unstable?
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Puu, T. (2011). Capacity Limits. In: Oligopoly. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-15964-0_5
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DOI: https://doi.org/10.1007/978-3-642-15964-0_5
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