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Intra‐firm Branch Competition for a Monopolist

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  • Wenli Cheng
  • Yew‐Kwang Ng

Abstract

This paper studies the effect of intra‐firm branch competition in a monopoly setting. It demonstrates that intra‐firm branch competition has a significant impact on the firm's market decisions, and consequently on the market outcome. The paper has identified the sufficient conditions under which a branch‐competitive monopoly is superior to a pure monopoly from the consumer's viewpoint in that the former supplies more quantity and higher quality at the same price.

Suggested Citation

  • Wenli Cheng & Yew‐Kwang Ng, 1999. "Intra‐firm Branch Competition for a Monopolist," Australian Economic Papers, Wiley Blackwell, vol. 38(3), pages 238-249, September.
    • Handle: RePEc:bla:ausecp:v:38:y:1999:i:3:p:238-249
    DOI: 10.1111/1467-8454.00054
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