On multiplicity of consistent conjectures in free entry oligopoly

Abstract

If we allow free entry into oligopoly, we should take into account the fact that the number of firms is variable. Therefore, we should include it in the arguments of the conjectural variation functions, and consider a conjectural variation for the change in the number of firms. We will show that for such conjectural variation functions, there exist multiple consistent conjectures equilibria in free entry oligopoly.