General equilibrium models of oligopolistic competition give rise to relative prices only without determining the price level. It is well known that the choice of a numÊraire or, more generally, of a normalization rule converting relative prices into absolute prices entails drastic consequences...

We consider a firm acting strategically on behalf of its shareholder. The price normalization problem arising in general equilibrium models of imperfect competition can be overcome by using the concept of real wealth maximization. This concept is based on shareholders´ aggregate demand and does...

General equilibrium models of oligopolistic competition give rise to relative prices only without determining the price level. It is well known that the choice of a numéraire or, more generally, of a normalization rule converting relative prices into absolute prices entails drastic consequences...