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Comparative statics for oligopoly. (English) Zbl 0584.90012
This paper provides a unified treatment of comparative statics in conjectural variations models of (i) duopoly with a general form of product differentiation, and (ii) oligopoly with homogeneous products. It examines the correspondence between second-order conditions, stability conditions, and the signs of comparative static derivatives. It also examines how the results vary with the values of the conjectural variation parameters, that is, with differing assumptions about oligopolistic behavior. Results similar to, but in some respects different from, those for perfectly competitive markets are obtained. Applications to problems of tax incidence strategic capacity choice etc. are mentioned.

MSC:
91B24Price theory and market structure
91B62Growth models in economics