We consider the equilibrium uniqueness problem for a large class of Cournot oligopolies with convex cost functions and a proper price function p with decreasing price flexibility. This class allows for (at 0) discontinuous industry revenue and in particular for p (y) = y-α. The paper illustrates in an exemplary way the Selten-Szidarovszky technique based on virtual backward reply functions. An algorithm for the calculation of the unique equilibrium is provided.
- Cournot oligopoly
- decreasing price flexibility
- discontinuous payoff functions
- equilibrium uniqueness
- Selten-Szidarovszky technique