Heterogeneous or Homogeneous Quantity Competition
AbstractWe consider when homogeneous goods quantity competition models are payoff equivalent to heterogeneous goods models. When they are equivalent, changes in some cost parameters are equivalent to changes in some demand parameters. Going from homogeneous models to heteregeneous models is always possible, but the converse is not easy. We characterize when the converse is possible for linearly separable and multiplicatively separable heterogeneous models. These results have implications that blur the distinction between process and product innovation.
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Bibliographic InfoPaper provided by Australian National University - Department of Economics in its series Papers with number 355.
Length: 8 pages
Date of creation: 1998
Date of revision:
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Postal: THE AUSTRALIAN NATIONAL UNIVERSITY, DEPARTMENT OF ECONOMICS, RESEARCH SCHOOL of PACIFIC STUDIES, RESEARCH SCHOOL OF SOCIAL SCIENCES, G.P.O. 4, CANBERRA ACT 2601 AUSTRALIA..O. BOX 4 CANBERRA 2601 AUSTRALIA.
Web page: http://economics.anu.edu.au/economics.htm
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OLIGOPOLIES ; MARKETS STRUCTURES ; COMPETITION;
Other versions of this item:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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