Change search
ReferencesLink to record
Permanent link

Direct link
The Cournot-Theocharis Problem Reconsidered
Departamento Matemática Aplicada y Estadística, Universidad Politécnica de Cartagena.
Umeå University, Faculty of Social Sciences, Centre for Regional Science (CERUM). Umeå University, Faculty of Social Sciences, Department of Economics.
Departamento Métodos Cuantitativos e Informáticos, Universidad Politécnica de Cartagena.
2008 (English)In: Chaos, Solitons & Fractals, ISSN 0960-0779, Vol. 37, no 4, 1025-1039 p.Article in journal (Refereed) Published
Abstract [en]

In 1959 Theocharis [Theocharis RD. On the stability of the Cournot solution on the oligopoly problem. Review of economic Studies 1959;27:133–4] showed that with linear demand and constant marginal costs Cournot equilibrium is destabilized when the competitors become more than three. With three competitors the Cournot equilibrium point becomes neutrally stable, so, even then, any perturbation throws the system into an endless oscillation. Theocharis’s argument was in fact proposed already in 1939 by Palander [Palander T. Konkurrens och marknadsjämvikt vid duopol och oligopol. Ekonomisk Tidskrift 1939;41:124–45, 222–50]. None of these authors considered the global dynamics of the system, which necessarily becomes nonlinear when consideration is taken of the facts that prices, supply quantities, and profits of active firms cannot be negative. In the present paper, we address the global dynamics.

Place, publisher, year, edition, pages
2008. Vol. 37, no 4, 1025-1039 p.
National Category
Research subject
URN: urn:nbn:se:umu:diva-13745DOI: doi:10.1016/j.chaos.2006.09.081OAI: diva2:153416
Available from: 2008-03-31 Created: 2008-03-31 Last updated: 2009-11-05Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Puu, Tönu
By organisation
Centre for Regional Science (CERUM)Department of Economics

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 71 hits
ReferencesLink to record
Permanent link

Direct link