Welfare Enhancing Coordination in Consumer Cooperatives under Mixed Oligopoly
AbstractThe aim of this paper is to study the welfare e¤ects of consumer cooperatives in mixed oligopoly markets. We show that under decreasing returns to scale and su¢ ciently high market competition these rms can contribute more to social welfare when acting on behalf of all consumers rather than only one representative consumer. This is because, by coordinating the preferences of consumers, these rms reduce their excessive market output, helping the market to come closer to the rst-best. In all other cases we show that such consumers coordination is not required to improve welfare.
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Bibliographic InfoPaper provided by University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini in its series Working Papers with number 1303.
Length: 11 pages
Date of creation: 2013
Date of revision: 2013
Consumer-owned Firms; Mixed Oligopoly; Collusion; Welfare;
Find related papers by JEL classification:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-25 (All new papers)
- NEP-BEC-2013-10-25 (Business Economics)
- NEP-COM-2013-10-25 (Industrial Competition)
- NEP-MIC-2013-10-25 (Microeconomics)
- NEP-MKT-2013-10-25 (Marketing)
- NEP-NET-2013-10-25 (Network Economics)
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