Cournot competitionunder a binding price ceiling: equilibrium structure and exact pass-through
This paper demonstrates that Cournot competition under a binding price ceiling and capacity constraints preserves payoff concavity to guarantee equilibrium existence, characterizes the resulting equilibrium set as a polytope with a unique aggregate output but potentially multiple allocations, and establishes that public supply exhibits exact (zero or one) pass-through while total supply is single-peaked in the ceiling level.