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Standardization versus Preference for Variety in Linear Cournot Oligopoly

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Author Info
Frédéric Deroian (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579)
Frédéric Gannon () (EconomiX - CNRS : UMR7166 - Université de Paris X - Nanterre, CERENE - Centre d'Etude et de Recherche en Economie et Gestion Logistique - Université du Havre)

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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.

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File URL: http://halshs.archives-ouvertes.fr/docs/00/36/68/95/PDF/DeroianGannon_StandardizationVersusPreferenceForVarietyInLinearCournotOligopoly_WPGreqamJun07.pdf
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Paper provided by HAL in its series Post-Print with number halshs-00366895_v1.

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Date of creation: 01 Jun 2007
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Handle: RePEc:hal:journl:halshs-00366895_v1

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Related research
Keywords: Standardization; Preference for Variety; Oligopoly;

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