Journal article
Ordinal versus cardinal complementarity: The case of Cournot oligopoly
Games and economic behavior, Vol.53(1), pp.1-14
10/01/2005
DOI: 10.1016/j.geb.2004.07.002
Abstract
While ordinal complementarity is more general than cardinal complementarity, the corresponding global sufficient conditions placed on the primitives of a constrained optimization problem are generally not comparable. We explore this issue in detail for the special case of a Cournot firm. We derive necessary and sufficient conditions for downward-sloping best-responses by imposing the ordinal test only for output levels that are actually reached along a best-response path. Both global tests, cardinal and ordinal, are shown not to be critical sufficient conditions, via a simple counterexample. Finally, we confirm that checking supermodularity of suitably transformed profits can work when the global tests for ordinal and cardinal complementarity both fail.
Details
- Title: Subtitle
- Ordinal versus cardinal complementarity: The case of Cournot oligopoly
- Creators
- Rabah Amir - University of Arizona
- Resource Type
- Journal article
- Publication Details
- Games and economic behavior, Vol.53(1), pp.1-14
- Publisher
- Elsevier Inc
- DOI
- 10.1016/j.geb.2004.07.002
- ISSN
- 0899-8256
- eISSN
- 1090-2473
- Language
- English
- Date published
- 10/01/2005
- Academic Unit
- Economics
- Record Identifier
- 9984380527702771
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