GENERAL EQUILIBRIUM AND IMPERFECT COMPETITION: PROFIT FEEDBACK EFFECTS AND PRICE NORMALISATIONS

There are two general issues which bedevil general equilibrium models with imperfect competition: price normalisation and the feedback from prices to incomes. We present a class of normalisations which do not affect the behaviour of oligopolists, this is argued to be the only class of normalisations with this general property. We also provide a set of necessary conditions for the existence of equilibrium with monopoly and feedback effects.


Issue Date:
Apr 04 1988
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/268331
Language:
English
Total Pages:
31




 Record created 2018-02-14, last modified 2018-02-14

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