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FROM IMPERFECT TO PERFECT COMPETITION: A PARAMETRIC APPROACH THROUGH CONJECTURAL VARIATIONS
Author(s) -
JULIEN LUDOVIC A.
Publication year - 2010
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2009.02167.x
Subject(s) - economics , imperfect competition , mathematical economics , imperfect , competition (biology) , parametric statistics , general equilibrium theory , competitive equilibrium , symmetric equilibrium , replication (statistics) , markov perfect equilibrium , perfect competition , microeconomics , nash equilibrium , mathematics , equilibrium selection , game theory , repeated game , ecology , linguistics , philosophy , statistics , biology
This paper features perfect competition under a parametric approach. We consider conjectural variations in a pure exchange economy where strategic interactions hold. We show, through an example, that the conjectural general equilibrium can coincide with the competitive equilibrium, independently of a replication procedure or an asymptotic identification. Additionally, the competitive equilibrium is a locally consistent conjectural general equilibrium. Perfect competition is defined at equilibrium.