Premium
A propos du surplus dans les marchés des intrants et sa relation avec le jeu du marché en aval .
Author(s) -
Basso Leonardo J.
Publication year - 2013
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/caje.12011
Subject(s) - downstream (manufacturing) , economics , order (exchange) , function (biology) , microeconomics , economic surplus , relation (database) , mathematical economics , welfare , computer science , market economy , operations management , finance , database , evolutionary biology , biology
Abstract In order to analyze the welfare effects of price changes in input markets – following for example a price‐fixing conspiracy – economists have studied the relationship between the surplus measured in the input markets and the surplus in the output markets. The latest results hinge on simplifying assumptions, which are relaxed here by linking the input markets surplus question to another stream of literature, which characterizes functions that oligopolists collectively, yet unintentionally, maximize. It is shown that the area under the input demands is equal to the change in a function for which critical points coincide with the equilibria of the downstream game. A particular case of these functions is the exact potential function.