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Excessive entry in a bilateral oligopoly

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  • Arijit Mukherjee

    ()
    (University of Nottingham)

Abstract

In a supplementary note to Ghosh and Morita ("Social desirability of free entry: a bilateral oligopoly analysis," 2007, IJIO), an example has been used to show that the condition for insufficient entry holds under the right-to-manage model of a vertically related industry. Using a linear demand curve, this note makes it clear that excessive entry rather than insufficient entry is quite common under a right-to-manage model, and shows that excessive entry occurs if the cost of entry is not very high.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 1 ()
Pages: 199-204

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Handle: RePEc:ebl:ecbull:eb-08l10040

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  1. Lommerud, Kjell Erik & Meland, Frode & Sørgard, Lars, 2001. "Unionized Oligopoly, Trade Liberalization and Location Choice," CEPR Discussion Papers 2990, C.E.P.R. Discussion Papers.
  2. Haucap, Justus & Wey, Christian, 2003. "Unionization Structures and Innovation Incentives," CEPR Discussion Papers 4079, C.E.P.R. Discussion Papers.
  3. Naylor, Robin A., 2002. "Industry profits and competition under bilateral oligopoly," Economics Letters, Elsevier, vol. 77(2), pages 169-175, October.
  4. Corneo, Giacomo, 1995. "National wage bargaining in an internationally integrated product market," European Journal of Political Economy, Elsevier, vol. 11(3), pages 503-520, September.
  5. Arghya Ghosh & Hodaka Morita, 2007. "Free entry and social efficiency under vertical oligopoly," RAND Journal of Economics, RAND Corporation, vol. 38(2), pages 541-554, 06.
  6. Cusumano, Michael A., 1954- & Takeishi, Akira, 1958-., 1991. "Supplier relations and management : a survey of Japanese, Japanese-transplant, and U.S. auto plants," Working papers 3256-91., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  7. Lopez, Monica Correa & Naylor, Robin A., 2004. "The Cournot-Bertrand profit differential: A reversal result in a differentiated duopoly with wage bargaining," European Economic Review, Elsevier, vol. 48(3), pages 681-696, June.
  8. Ghosh, Arghya & Morita, Hodaka, 2007. "Social desirability of free entry: A bilateral oligopoly analysis," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 925-934, October.
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Cited by:
  1. Arijit Mukherjee, 2010. "External Economies of Scale and Insufficient Entry," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 365-371, September.
  2. Marjit, Sugata & Mukherjee, Arijit, 2013. "Foreign competition and social efficiency of entry," Economic Modelling, Elsevier, vol. 32(C), pages 108-112.
  3. Arijit Mukherjee & Udo Broll & Soma Mukherjee, 2009. "The welfare effects of entry: the role of the input market," Journal of Economics, Springer, vol. 98(3), pages 189-201, December.

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