Exploring Duopoly Markets with Conjectural Variations

Autor/inn/en	Julien, Ludovic A.; Musy, Olivier; Saïdi, Aurélien W.
Titel	Exploring Duopoly Markets with Conjectural Variations
Quelle	In: Journal of Economic Education, 45 (2014) 4, S.330-346 (17 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
DOI	10.1080/00220485.2014.946545
Schlagwörter	Microeconomics; Competition; Industrial Structure; Game Theory + Suchen Sie Ihr Suchwort? Mikroökonomie; Wettkampf; Industrielandschaft; Spieltheorie
Abstract	In this article, the authors investigate competitive firm behaviors in a two-firm environment assuming linear cost and demand functions. By introducing conjectural variations, they capture the different market structures as specific configurations of a more general model. Conjectural variations are based on the assumption that each firm believes its own strategy influences its rival's strategy. Firms derive their optimal choice from these exogenous conjectures, under the form of a conjectural best-response function. The authors' approach fully encompasses the standard measures of market power (the Lerner Index) and concentration (the Herfindahl Index), both depending on the conjectural variations. They finally represent, analytically and graphically, the equilibrium strategies and the associated indexes in a unified framework for any level of competition, ranging from perfect competition to collusion. (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10