TEL  Vol.2 No.3 , August 2012
Stackelberg-Cournot and Cournot Equilibria in a Mixed Markets Exchange Economy
Author(s) Ludovic A. Julien*
ABSTRACT
In this note, we compare two strategic general equilibrium concepts: the Stackelberg-Cournot equilibrium and the Cournot equilibrium. We thus consider a market exchange economy including atoms and a continuum of traders, who behave strategically. We show that, when the preferences of the small traders are represented by Cobb-Douglas utility functions and the atoms have the same utility functions and endowments, the Stackelberg-Cournot and the Cournot equilibrium equilibria coincide if and only if the followers’ best responses functions have a zero slope at the SCE.

Cite this paper
L. Julien, "Stackelberg-Cournot and Cournot Equilibria in a Mixed Markets Exchange Economy," Theoretical Economics Letters, Vol. 2 No. 3, 2012, pp. 300-306. doi: 10.4236/tel.2012.23056.
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