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Leader, Or Just Dominant? The Dominant-Firm Model Revisited

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  • M von der Fehr, Nils-Henrik

    (Dept. of Economics, University of Oslo)

Abstract

I revisit the dominant-firm model and discuss its implicit assumption of a sequential move structure. I argue that a simultaneous move structure is often more reasonable and derive an alternative formulation of the model based on this approach.

Suggested Citation

  • M von der Fehr, Nils-Henrik, 2011. "Leader, Or Just Dominant? The Dominant-Firm Model Revisited," Memorandum 15/2010, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2010_015
    as

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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2010/Memo-15-2010.pdf
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    References listed on IDEAS

    as
    1. David Besanko & Ulrich Doraszelski, 2004. "Capacity Dynamics and Endogenous Asymmetries in Firm Size," RAND Journal of Economics, The RAND Corporation, vol. 35(1), pages 23-49, Spring.
    2. Péter Eső & Volker Nocke & Lucy White, 2010. "Competition for scarce resources," RAND Journal of Economics, RAND Corporation, vol. 41(3), pages 524-548, September.
    3. Raymond J. Deneckere & Dan Kovenock, 1992. "Price Leadership," Review of Economic Studies, Oxford University Press, vol. 59(1), pages 143-162.
      • Raymond Deneckere & Dan Kovenock, 1988. "Price Leadership," Discussion Papers 773, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Daughety, Andrew F, 1990. "Beneficial Concentration," American Economic Review, American Economic Association, vol. 80(5), pages 1231-1237, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    dominant…firm; monopoly with fringe; sequential moves;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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