Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288569 
Year of Publication: 
2020
Citation: 
[Journal:] Economic Theory [ISSN:] 1432-0479 [Volume:] 71 [Issue:] 1 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2020 [Pages:] 341-374
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
In oligopoly models with differentiated products, producers face a market demand function that reflects the preferences of consumers. However, typical assumptions on preferences place only weak restrictions on the shape of aggregate demand. This may result in profit functions that are not strictly quasiconcave, in best-reply correspondences that are not differentiable, and in equilibria that are not robust to perturbations. This paper establishes differentiability and robustness as a generic property: for an open, dense set of economies, best replies are differentiable in a neighborhood of equilibria, which is a precondition for comparative statics. All these economies have a finite number of equilibria in pure strategies.
Subjects: 
Comparative statics
Imperfect competition
Cournot–Walras equilibrium
Regular production economy
JEL: 
D43
D50
D51
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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