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Demand shifts and imperfect competition Author info | Abstract | Publisher info | Download info | Related research | Statistics Simon Cowan
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The effects of demand shifts on output, price and profits in imperfectly competitive industries with no entry or exit are derived. Four types of demand shift are modelled: additive and multiplicative shifts of the demand and inverse demand functions. Necessary and sufficient conditions for output, price and profits to increase with an outward demand shift are derived for each case. Either output or the price, but not both, may fall with a positive demand shift. Profits may also fall for a Cournot oligopoly. Log-concavity of the direct demand function is sufficient for the standard results to go through.
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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number
188.
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Date of creation: 2004Date of revision:
Handle: RePEc:oxf:wpaper:188Contact details of provider: Postal: Manor Rd. Building, Oxford, OX1 3UQ Email: Web page: http://www.economics.ox.ac.uk/ More information through EDIRC
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Keywords: Comparative Statics Monopoly Oligopoly Log-concavity. Other versions of this item:
Find related papers by JEL classification: D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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