Seminar in Microeconomics - Damiano Turchet (University of Warwick)
Time
Thursday, 6. July 2023
14:00 - 15:00
Location
University Konstanz, F208
Organizer
Speaker:
Damiano Turchet (University of Warwick)
Titel: On the Existence of Monopoly Equilibrium: a Substitutability Approach
We study the existence of a monopoly equilibrium in the bilateral mixed exchange framework introduced in Busetto et al.(2023). Non existence examples in which small traders have CES utility functions are provided and a link between the existence of an equilibrium and the degree of substitutability of the goods is explored. Therefore, the existence result is proved by introducing a sufficient assumption on the utilities of the small traders, stressing that we need them to be locally equivalent to a constant elasticity of scale utility function, whose elasticity parameter is greater than unity.
Registration to Ms. Madeleine Hafner per E-Mail