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On the Equilibrium Uniqueness in Cournot Competition with Demand Uncertainty
The B.E. Journal of Theoretical Economics ( IF 0.288 ) Pub Date : 2020-02-19 , DOI: 10.1515/bejte-2019-0131
Stefanos Leonardos 1 , Costis Melolidakis 2
Affiliation  

Abstract We revisit the linear Cournot model with uncertain demand that is studied in Lagerlöf (2006. “Equilibrium Uniqueness in a Cournot Model with Demand Uncertainty.” The B.E. Journal of Theoretical Economics 6, no. 1. (Topics), Article 19: 1–6.) and provide sufficient conditions for equilibrium uniqueness that complement the existing results. We show that if the distribution of the demand intercept has the decreasing mean residual demand (DMRD) or the increasing generalized failure rate (IGFR) property, then uniqueness of equilibrium is guaranteed. The DMRD condition implies log-concavity of the expected profits per unit of output without additional assumptions on the existence or the shape of the density of the demand intercept and, hence, answers in the affirmative the conjecture of Lagerlöf (2006. “Equilibrium Uniqueness in a Cournot Model with Demand Uncertainty.” The B.E. Journal of Theoretical Economics 6, no. 1. (Topics), Article 19: 1–6.) that such conditions may not be necessary.

中文翻译:

具有需求不确定性的古诺竞争中的均衡唯一性

摘要我们重新审视了Lagerlöf(2006年,“具有需求不确定性的古诺模型中的均衡唯一性”)研究的具有不确定需求的线性古诺模型。《 BE理论经济杂志》,第6期,第1期(主题),第19条:1 –6。),并为补充现有结果的平衡唯一性提供充分条件。我们表明,如果需求截距的分布具有减少的平均剩余需求(DMRD)或增加的广义故障率(IGFR)属性,则可以保证均衡的唯一性。DMRD条件意味着单位产出预期利润的对数凹度,而无需对需求截距的存在或密度的形状进行额外假设,因此肯定地回答了Lagerlöf(2006。“具有需求不确定性的古诺模型中的平衡唯一性。” 《 BE理论经济学杂志》,第6期。1.(主题),第19条:1-6。)这样的条件可能不是必需的。
更新日期:2020-02-19
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