On the Properties of Linear Supply Functions in Oligopoly

Quaderni - Working Paper DSE N° 1014

8 Pages Posted: 20 Jun 2015

See all articles by Flavio Delbono

Flavio Delbono

University of Bologna - School of Economics, Management, and Statistics

Luca Lambertini

University of Bologna - Department of Economics

Date Written: June 18, 2015

Abstract

In this note we revisit the result by Menezes and Quiggin (2012), showing that under linear supply function competition, the same Nash equilibrium results when firms choose slopes or intercepts of their supply functions. This is because the first order conditions emerging in the two strategy spaces are not linearly independent.

Keywords: supply function, linear independence

JEL Classification: D43, L13

Suggested Citation

Delbono, Flavio and Lambertini, Luca, On the Properties of Linear Supply Functions in Oligopoly (June 18, 2015). Quaderni - Working Paper DSE N° 1014, Available at SSRN: https://ssrn.com/abstract=2620649 or http://dx.doi.org/10.2139/ssrn.2620649

Flavio Delbono (Contact Author)

University of Bologna - School of Economics, Management, and Statistics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Luca Lambertini

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy
+39 051 2092600 (Phone)
+39 051 2092664 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
52
Abstract Views
537
Rank
684,709
PlumX Metrics