Oligopoly

Old Ends - New Means

  • Tönu Puu

Table of contents

  1. Front Matter
    Pages i-ix
  2. Tönu Puu
    Pages 1-16
  3. Tönu Puu
    Pages 17-41
  4. Tönu Puu
    Pages 43-67
  5. Tönu Puu
    Pages 69-100
  6. Tönu Puu
    Pages 101-125
  7. Tönu Puu
    Pages 127-150
  8. Tönu Puu
    Pages 151-170
  9. Back Matter
    Pages 171-172

About this book

Introduction

The book focuses classical oligopoly theory as developed in 1840-1940. By the end of this period oligopoly came under the spell of game theory in its probabilistic equilibrium format. Work by Cournot, von Stackelberg, Palander, and Hotelling, causal and dynamic in essence, but ignored, is reconsidered in the light of modern dynamics using topology and numerics. As particular features, von Stackelberg leadership is included in the dynamic Cournot model, the Hotelling problem is solved with elastic demand, thus skipping the absurd idea of quadratic transportation costs. Further, it is shown that the celebrated destabilisation of Cournot equilibrium under increased competition is due to mistakenly assuming constant returns, and that the whole idea of rational expectations is untenable in dynamic oligopoly. Early original ideas in oligopoly theory, such as coexistence and multiplicity of attractors are focused again after many undeserved decades of oblivion.

Keywords

Complex Dynamics Iterated Maps Oligopoly Theory

Authors and affiliations

  • Tönu Puu
    • 1
  1. 1., CERUMUmea UniversityUmeaSweden

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-15964-0
  • Copyright Information Springer-Verlag Berlin Heidelberg 2011
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-642-15963-3
  • Online ISBN 978-3-642-15964-0
  • About this book