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Conjectural Cost Variations in a Differentiated Good Oligopoly

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Author Info
Jens Jurgan
Abstract

In the homogenous good case, the relationship between market struc- ture and efficiency was studied extensively. Assuming a standard quadratic utility with quantity competition, this paper carries on the analysis in a differentiated good context. It can be shown that there is a positive re- lationship between market heterogeneity and efficiency, too. In contrast to the homogenous good case, consumer surplus as well as producer surplus increases with the dispersion of marginal costs.

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File URL: http://www.bgpe.de/texte/DP/069_jurgan.pdf
File Format: application/pdf
File Function: First version, 2009
Download Restriction: no

Publisher Info
Paper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 069.

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Length: 33 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:bav:wpaper:069_jurgan

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Web page: http://www.bgpe.de/
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Related research
Keywords: Differentiated goods; Cournot; Asymmetric costs; Cost variation; Welfare;

Find related papers by JEL classification:
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L4 - Industrial Organization - - Antitrust Issues and Policies

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This page was last updated on 2009-12-4.

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