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Standardization versus Preference for Variety in Linear Cournot Oligopoly

Author

Listed:
  • Frédéric Deroian

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Frédéric Gannon

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, CERENE - Centre d'Etude et de Recherche en économiE et gestioN LogistiquE - ULH - Université Le Havre Normandie - NU - Normandie Université)

Abstract

We consider a Cournot oligopoly setting in which consumers have an intrinsic preference for variety, while unit production costs of firms increase with the number of goods they produce. This environment exhibits a general under-provision of variety with respect to social welfare.

Suggested Citation

  • Frédéric Deroian & Frédéric Gannon, 2007. "Standardization versus Preference for Variety in Linear Cournot Oligopoly," Post-Print halshs-00366895, HAL.
    • Handle: RePEc:hal:journl:halshs-00366895
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00366895
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