Natural Oligopolies : A Vertical Differentiation Model
AbstractIn a vertical differentiation model, we investigate whether the property of finiteness holds when the average cost function depends on the quantity. We prove that this property holds when the cost function has increasing returns. In the case of cost functions with decreasing returns, we prove that the finiteness property does not hold if the average cost tends to zero when the quantity tends to zero.
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Bibliographic InfoPaper provided by UniversitÃ© PanthÃ©on-Sorbonne (Paris 1) in its series Papiers d'Economie MathÃ©matique et Applications with number 96.05.
Length: 21 pages
Date of creation: 1996
Date of revision:
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OLIGOPOLIES ; VERTICAL INTEGRATION;
Other versions of this item:
- Lahmandi-Ayed, Rim, 2000. "Natural Oligopolies: A Vertical Differentiation Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(4), pages 971-87, November.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
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- Rim Lahmandi-Ayed, 2007. "Finiteness property with vertical and horizontal differentiation: does it really matter?," Economic Theory, Springer, vol. 33(3), pages 531-548, December.
- Raphael Auer & Philip Sauré, 2011.
"Spatial Competition in Quality, Demand-Induced Innovation, and Schumpeterian Growth,"
11.04, Swiss National Bank, Study Center Gerzensee.
- Raphael Auer & Philip Sauré, 2011. "Spatial Competition in Quality, Demand Induced Innovation, and Schumpeterian Growth," DEGIT Conference Papers c016_067, DEGIT, Dynamics, Economic Growth, and International Trade.
- Raphael Anton Auer & Philip Ulrich Sauré, 2011. "Spatial Competition in Quality, Demand-Induced Innovation, and Schumpeterian Growth," Working Papers 2011-10, Swiss National Bank.
- Jean-Marc Bonnisseau & Hend Ghazzai, 2005.
"Monopole, stratégies multiproduit et incitation à la recherche et développement,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Jean-Marc Bonnisseau & Hend Ghazzai, 2005. "Monopole, stratégies multiproduit et incitation à la recherche et développement," Cahiers de la Maison des Sciences Economiques b05025, Université Panthéon-Sorbonne (Paris 1).
- Jean-Marc Bonnisseau & Rim Lahmandi-Ayed, 2004.
"Vertical differentiation with non-uniform consumers¡ distribution,"
Cahiers de la Maison des Sciences Economiques
b04114, Université Panthéon-Sorbonne (Paris 1).
- Jean-Marc Bonnisseau & Rim Lahmandi-Ayed, 2007. "Vertical differentiation with non-uniform consumers' distribution," International Journal of Economic Theory, The International Society for Economic Theory, vol. 3(3), pages 179-190.
- Amacher, Gregory & Koskela, Erkki & Ollikainen, Markku, 2003. "Environmental Quality Competition and Eco-labeling," Discussion Papers 848, The Research Institute of the Finnish Economy.
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