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Multiproduct Firms: A Nested Logit Approach Author info | Abstract | Publisher info | Download info | Related research | Statistics Simon P. Anderston
Andre de Palma
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Thie paper proves the existence of a symmetric equilibrium with multiproduct firms using a nested logit model of demand. The demand model is parametrized by two variable which characterize different dimensions of preference variety. These reflect intragroup heterogeneity and intergropu heterogeneity, a group (or nest) being the set of products produced by a firm. There are then two dimensions to market performance; the total number of firms and the range of products produced per firm. It is shown that the market equilibrium involves an excessive number of firms, but each firm provides too few products.
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Paper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number
973.
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Date of creation: Mar 1991Date of revision:
Handle: RePEc:nwu:cmsems:973Contact details of provider: Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014 Phone: 847/491-3527 Fax: 847/491-2530 Email: Web page: http://www.kellogg.northwestern.edu/research/math/ More information through EDIRC
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Keywords: Discrete choice model ; oligopolistic competition ; multiple product firms ; nested logit model. ; Other versions of this item:
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