Monopoly conditions in a Cournot-Theocharis oligopoly model under adaptive expectations

Abstract

<p style='text-indent:20px;'>We consider the Cournot-Theocharis oligopoly model, where firms make their choices under adaptive expectations. Following [<xref ref-type="bibr" rid="b2">2</xref>], we assume that quantities cannot be negative, which implies that the model is nonlinear. The stability of the equilibrium point in the general case is analyzed. We focus on the conditions for which the number of competitors is reduced to a monopoly. In particular, we find necessary and sufficient conditions giving an analytic proof of the convergence to oligopoly to monopoly.</p>