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Journal of Economics

, Volume 112, Issue 1, pp 85–90 | Cite as

Inferior factor in Cournot oligopoly revisited

  • Paolo BertolettiEmail author
  • Pierre von Mouche
Article

Abstract

We reconsider the recent work by Okuguchi (J Econ 101:125–131, 2010) on (possibly asymmetric) Cournotian firms with two production factors, one being inferior for each firm. It is shown there that an increase in the price of the inferior factor does raise the equilibrium industry output. In addition of providing a simpler and more rigorous proof of that result, we generalize it to the case of technologies with \(s\ge 2\) factors and also allow some firms not to use the inferior one.

Keywords

Inferior factor Cournot equilibrium Aggregate revenue concavity 

JEL Classification

D21 D43 

Notes

Acknowledgments

The authors are very grafetul to an anonymous referee for valuable suggestions.

References

  1. Bertoletti P, Rampa G (2012) On inferior inputs and marginal returns. J Econ. doi: 10.1007/s00712-012-0294-4
  2. Murphy FH, Sherali HD, Soyster AL (1982) A mathematical programming for determining oligopolistic equilibrium. Math Program 24:92–106CrossRefGoogle Scholar
  3. Novshek W (1985) On the existence of Cournot equilibrium. Rev Econ Stud 52:85–98CrossRefGoogle Scholar
  4. Okuguchi K (2010) Inferior factor in Cournot oligopoly. J Econ 101:125–131CrossRefGoogle Scholar
  5. Okuguchi K, Suzumura K (1971) Uniqueness of the Cournot oligopoly equilibrium: a note. Econ Stud Quart 22:81–83Google Scholar
  6. von Mouche PHM, Quartieri F (2012) Equilibrium uniqueness result for Cournot oligopolies revisited. In: Petrosjan LA, Zenkevich NA (eds) Contributions to game theory and management, vol V, Saint Petersburg, pp 209–229Google Scholar

Copyright information

© Springer-Verlag Wien 2013

Authors and Affiliations

  1. 1.Department of Economics and ManagementUniversitá di PaviaPaviaItaly
  2. 2.Economics of Consumers and Households GroupWageningen UniversityWageningenThe Netherlands

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