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Computing Equilibrium Solutions for Imperfectly Competitive Markets
Author(s) -
Plessner Yakir
Publication year - 1971
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237431
Subject(s) - monopolistic competition , economics , perfect competition , viewpoints , competition (biology) , competitive equilibrium , constant (computer programming) , returns to scale , computation , microeconomics , partial equilibrium , mathematical economics , general equilibrium theory , computer science , production (economics) , art , ecology , algorithm , programming language , visual arts , biology , monopoly
In most theoretical as well as empirical studies the conditions of free competition are assumed, and thus conclusions are subject to competitive behavior. In the real world, however, noncompetitive structures are quite common and deserve not less but, from several viewpoints, more attention than competitive ones. Assuming a linear demand system and constant returns to scale and using quadratic programming, it is shown how partial market equilibria for various leading firm and monopolistic structures can be computed. The operational usefulness of such computations is demonstrated via an application to an agricultural industry.