Editorial comment on “A Note on the Equivalence of the Conjectural Variations Solution and the Coefficient of Cooperation” by Escrihuela-Villar, M., The B.E. Journal of Theoretical Economics. Volume 15, Issue 2, Pages 473–480, 2015
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Ronald Peeters
The main finding in the paper is that “the CV and the CC models are essentially equivalent when the conjectural variation expected and the coefficient of cooperation coincide.” (p. 479). After the article was published, we became aware that this finding is already observed in Martin (2002): “The conjectural elasticity model and the coefficient of cooperation model are therefore formally equivalent.” (p. 52). While the observation in Martin’s textbook is placed in the context of a duopoly and a proof is omitted, Escrihuela-Villar’s statement is in the context of an oligopoly with arbitrary number of firms and a formal proof is provided. Although Escrihuela-Villar (2015) cites pages 50–51 of Martin’s textbook concerning criticisms in the literature of conjectural variation models, a citation to the statement on page 52 of Martin (2002) is missing. Notwithstanding the more general context in which the finding of Escrihuela-Villar is placed, a proper citation to Martin (2002) should have been there.
References
Escrihuela-Villar, M. 2015. “A Note on the Equivalence of the Conjectural Variations Solution and the Coefficient of Cooperation.” The B.E. Journal of Theoretical Economics 15:473–80.10.1515/bejte-2014-0094Search in Google Scholar
Martin, S. 2002. Advanced Industrial Economics, 2nd ed. Oxford: Blackwell Publishers.Search in Google Scholar
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- Frontmatter
- Research Articles
- Currency Exchange in an Open-Economy Random Search Model
- Relative Concerns on Visible Consumption: A Source of Economic Distortions
- Workplace Deviance and Recession
- Strategic Delay in Global Games
- Assortative Outsourcing with Exit
- On the Impossibility of Fair Risk Allocation
- Price and Inventory Dynamics in an Oligopoly Industry: A Framework for Commodity Markets
- The Dynamics of Incentives, Productivity, and Operational Risk
- Dynamic Contests With Bankruptcy: The Despair Effect
- Welfare-Improving Effect of a Small Number of Followers in a Stackelberg Model
- The Predominant Role of Signal Precision in Experimental Beauty Contests
- Loss Aversion and Consumption Plans with Stochastic Reference Points
- Teamwork Efficiency and Company Size
- A Model of Access in the Absence of Markets
- The Core of Aggregative Cooperative Games with Externalities
- Notes
- Competition and Personality in a Restaurant Entry Game
- Editorial
- Editorial comment on “A Note on the Equivalence of the Conjectural Variations Solution and the Coefficient of Cooperation” by Escrihuela-Villar, M., The B.E. Journal of Theoretical Economics. Volume 15, Issue 2, Pages 473–480, 2015
Articles in the same Issue
- Frontmatter
- Research Articles
- Currency Exchange in an Open-Economy Random Search Model
- Relative Concerns on Visible Consumption: A Source of Economic Distortions
- Workplace Deviance and Recession
- Strategic Delay in Global Games
- Assortative Outsourcing with Exit
- On the Impossibility of Fair Risk Allocation
- Price and Inventory Dynamics in an Oligopoly Industry: A Framework for Commodity Markets
- The Dynamics of Incentives, Productivity, and Operational Risk
- Dynamic Contests With Bankruptcy: The Despair Effect
- Welfare-Improving Effect of a Small Number of Followers in a Stackelberg Model
- The Predominant Role of Signal Precision in Experimental Beauty Contests
- Loss Aversion and Consumption Plans with Stochastic Reference Points
- Teamwork Efficiency and Company Size
- A Model of Access in the Absence of Markets
- The Core of Aggregative Cooperative Games with Externalities
- Notes
- Competition and Personality in a Restaurant Entry Game
- Editorial
- Editorial comment on “A Note on the Equivalence of the Conjectural Variations Solution and the Coefficient of Cooperation” by Escrihuela-Villar, M., The B.E. Journal of Theoretical Economics. Volume 15, Issue 2, Pages 473–480, 2015
