Cournot-Nash Equilibrium and Perfect Competition in the Solow-Uzawa Growth Model
Journal Title: Revista CEA - Year 2021, Vol 7, Issue 15
Abstract
The purpose of this study is to contribute to economic growth theory by introducing Cournot competition into the Solow-Uzawa neoclassical growth model with Zhang’s concept of disposable income and utility function. The Solow-Uzawa two-sector growth model deals with economic growth with two sectors with all the markets perfectly competitive. The final goods sector in this study is the same as that in the Solow model with perfect competition. The consumer goods sector is composed of two firms and characterized by Cournot competition. All the input factors are traded in perfectly competitive markets. The duopoly’s product is solely consumed by consumers. Perfectly competitive firms earn zero profit, while duopolists earn positive profits. This study assumes that the population shares the profits equally. First, we built the dynamic model. Afterward, we found a computational procedure to describe the time-dependent path of the economy and conducted comparative dynamic analyses of some parameters. Finally, we compared the economic performances of the model with Cournot competition and the perfectly competitive model.
Authors and Affiliations
Wei-Bin Zhang
Keywords
Related Articles
- EP ID EP697570
- DOI https://doi.org/10.22430/24223182.1801
- Views 86
- Downloads 0
The balanced scorecard as a tool for companies in crisis
This article aims to analyze the relevance of the Balanced Scorecard (BSC) for companies that face periods of crisis by means of a literature review that enables to understand the opportunitie...
Gestión de tecnología en el escrutinio electoral en Colombia
La tecnología es fundamental en el desarrollo de procesos electorales. Este factor tuvo incidencia en los comicios de 2014 en Colombia, especialmente en la transparencia de la gestión electoral (GE). El objetivo de este...
Strategic Planning and Organizational Structure in the University Context: A Case Study
This paper describes how the Strategic Planning (SP) model of two Higher Education Institutions (HEIs) responds to the needs of the education sector. Its primary objective is to identify the main SP models that have been...
Factors that influence economic value in the Colombian apparel industry
This work aims at identifying the factors that influenced economic value in the Colombian apparel industry from 2010 to 2016. Financial and economic value-added indicators are analyzed to measure the growth, efficiency,...
Approaches, Dynamics, and Motivations to Develop and Purchase Innovative Green Products
As a result of the concerning current global environmental situation, companies in the manufacturing sector and their customers have reflected on the need to develop and purchase, respectively, Innovative Green Products...