AURÉLIEN SAÏDI
Maître de conférences avec HDR
2011-10
Do followers really matter in Stackelberg competition?
Ludovic A. Julien, Olivier Musy, Aurélien Saïdi
- Abstract
- In this note, we consider a generalized T−stage Stackelberg oligopoly. We provide
a proof and an interpretation that under the two necessary and sufficient conditions
of linear aggregate demand and identical constant marginal costs, followers
do not matter for leaders. Leaders act as rational myopic agents, voluntarily ignoring
the number of followers and remaining stages, thereby behaving as Cournotian
oligopolists. Strategies of incumbent firms are invariant to entry of new cohorts.
Their profits can be studied by the way of two discount factors: the first impacting
markup and the second impacting output supply. Some implications in terms of
welfare and convergence toward competitive equilibrium are derived. - Mot(s) clé(s)
- Leader’s markup discount factor; linear economy; follower’s output discount factor; myopic behavior
2008-44
Balanced-Budget Rule, distortionary taxes and Aggregate Instability: A Comment
Aurélien Saïdi
- Abstract
- It has been shown that under perfect competition and constant returns-to-scale, a one-sector growth model may exhibit local indeterminacy when income tax rates are endogenously determined by a balanced-budget rule while government expendi- tures are fixed. This paper shows that the associated aggregate instability does not ensue from the local indeterminacy of a specific stationary equilibrium but from the multiplicity of the stationary equilibria and persists under local determinacy of all of them. We provide a global analysis of the Schmitt-Grohe and Uribe model [1997] and study specific cases that were not investigated in the original paper, when aggregate instability is inherited from the coexistence of two saddle-path equilibria on one hand and from the connection of the two steady states on the other hand.
- Mot(s) clé(s)
- Balanced-budget rule, Increasing returns, Indeterminacy, Saddle-sink connection
Please wait ...