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Comparative statics for profit‐maximizing and labor‐managed cournot oligopolies
Author(s) -
Okuguchi Koji
Publication year - 1993
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090140506
Subject(s) - comparative statics , cournot competition , oligopoly , microeconomics , economics , profit (economics) , wage , wage rate , industrial organization , labour economics
Comparative static results are derived for two types of oligopoly: profit‐maximizing and labor‐managed Cournot oligopolies. After establishing a general principle for comparative statics for oligopoly, we will examine how a shift in the demand function, changes in the wage rate, indirect tax rates and fixed costs, and technical change affect the equilibrium Cournot industry and firms‘ outputs, firms’ profits and dividends per unit of labor. We will also analyze the effects of entry. Our analysis makes an extensive use of the relationship existing between an individual firm's and industry outputs. We will derive two kinds of stability conditions: one behavioristic and the other computational. Finally, we will conduct comparative static analysis for mixed oligopoly where several profit‐maximizing and labor‐managed firms co‐exist.