A BEJTE Topics article.

Abstract

If Cournot oligopolists face uncertainty about the intercept of a linear demand function and if the realized market price must be non-negative, then expected demand becomes convex, which can create a multiplicity of equilibria. This note shows that if the distribution of the demand intercept has a monotone hazard rate and if another, rather weak, assumption is satisfied, then uniqueness of equilibrium is guaranteed.

Submitted: August 30, 2006 · Accepted: October 4, 2006 · Published: December 4, 2006

Originally published in Topics in Theoretical Economics.

Recommended Citation

Lagerlöf, Johan N.M. (2006) "Equilibrium Uniqueness in a Cournot Model with Demand Uncertainty," Topics in Theoretical Economics: Vol. 6 : Iss. 1, Article 19.
Available at: http://www.bepress.com/bejte/topics/vol6/iss1/art19