<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper introduces into the discussion of the stability of quantity-oligopoly equilibrium, the role that the slope of the marginal utility curve and of market entry in shaping the equilibrium and its stability. It does so by considering inverse multivariate linear demand functions and the notion of stability related to multivariate mean value theorem. The equilibrium cluster of Cournot sellers is determined by the stability dictated by this theorem and the rate of decline of the marginal utility of the product under consideration. Strategic complementarity is found to be the case under product heterogeneity, while the strategic substitutability associated with product homogeneity, induces a modification of Cournot limit theorem.</p>
</abstract>

This paper introduces into the discussion of the stability of quantity-oligopoly equilibrium, the role that the slope of the marginal utility curve and of market entry in shaping the equilibrium and its stability. It does so by considering inverse multivariate linear demand functions and the notion of stability related to multivariate mean value theorem. The equilibrium cluster of Cournot sellers is determined by the stability dictated by this theorem and the rate of decline of the marginal utility of the product under consideration. Strategic complementarity is found to be the case under product heterogeneity, while the strategic substitutability associated with product homogeneity, induces a modification of Cournot limit theorem.

Marginal Utility and Cournot Stability Under Market Entry

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Marginal Utility and Cournot Stability Under Market Entry"}

This paper introduces into the discussion of the stability of quantity-oligopoly equilibrium, the role that the slope of the marginal utility curve and of...

Marginal Utility and Cournot Stability Under Market Entry

Published Online: May 26, 2021

Page range: 187 - 197

DOI: https://doi.org/10.2478/sbe-2021-0015

Keywords
Cournot equilibrium stability, General quantity oligopoly, Quasilinear quadratic utility, Mean value theorem

© 2021 Gerasimos Soldatos, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Marginal Utility and Cournot Stability Under Market Entry

Published Online: May 26, 2021

Page range: 187 - 197

DOI: https://doi.org/10.2478/sbe-2021-0015

KeywordsCournot equilibrium stability, General quantity oligopoly, Quasilinear quadratic utility, Mean value theorem

© 2021 Gerasimos Soldatos, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Cournot equilibrium stability, General quantity oligopoly, Quasilinear quadratic utility, Mean value theorem