|Title||Cournot Equilibrium Uniqueness: At 0 Discontinuous Industry Revenue and Decreasing Price Flexibility|
|Author(s)||Mouche, Pierre Von; Sato, Takashi|
|Source||International game theory review (2019). - ISSN 0219-1989|
|Publication type||Refereed Article in a scientific journal|
|Keyword(s)||Cournot oligopoly - decreasing price flexibility - discontinuous payoff functions - equilibrium uniqueness - pseudo-concavity - Selten-Szidarovszky technique|
We consider the equilibrium uniqueness problem for a large class of Cournot oligopolies with convex cost functions and a proper price function p with decreasing price flexibility. This class allows for (at 0) discontinuous industry revenue and in particular for p (y) = y-α. The paper illustrates in an exemplary way the Selten-Szidarovszky technique based on virtual backward reply functions. An algorithm for the calculation of the unique equilibrium is provided.