THE EXISTENCE of equilibrium in Cournot oligopoly games

Zheng Huang (2010). THE EXISTENCE of equilibrium in Cournot oligopoly games Honours Thesis, School of Economics, The University of Queensland.

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Author Zheng Huang
Thesis Title THE EXISTENCE of equilibrium in Cournot oligopoly games
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2010
Thesis type Honours Thesis
Supervisor Professor Rabee Tourky
Total pages 65
Language eng
Subjects 340100 Economic Theory
Formatted abstract

In the growing literature on game theory, continuous attention has been drawn to a theorem by Novshek (1985) on the existence of equilibrium in Cournot oligopoly games. This theorem is of substantial importance because it gives an equilibrium in a most general setting of a Cournot model without assuming convexity of firms' cost functions. Furthermore, it weakens the assumption of concave inverse demand.              

However, the proof of this theorem provided by Novshek (1985) is not very well clarified. In addition to this, the proof is not complete in the sense that it only considers situations where firms' best response correspondences have continuous branches. Realizing this incompleteness, Kukushkin (1994) gave a rigorous proof beginning with a discrete version of the Cournot model. Kukushkin's proof is a complete and satisfactory one, but unfortunately there has not been an alternative proof given from a different perspective than his in the existing literature. This became the main motivation for this thesis. 

In this thesis, I provide a clarification of Novshek's original proof, discuss the refinement by Kukushkin (1994), and give an alternative proof of Novshek's theorem. 

Keyword Game theory
Oligopolies --Mathematical models
Oligopolies -- Econometric models

Document type: Thesis
Collection: UQ Theses (non-RHD) - UQ staff and students only
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