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Competition between Multiproduct Firms with Heterogeneous Costs

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  • Roberto Roson

    ()
    (Department of Economics, University Of Venice Cà Foscari)

Abstract

This paper draws upon Feenstra and Ma (2007, 2008), to develop a model of asymmetric competition between multiproduct firms. The model is used to analyze how cost asymmetry affects the equilibrium, with determination of quantity/price as well as product scope per firm. By treating the number of firms as a continuous variable, the model is extended to account for the endogenous determination of the number of firms in a long-run, monopolistically competitive equilibrium, with free entry by heterogeneous firms.

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File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2012/WP_DSE_roson_14_12.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2012_14.

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Length: 13
Date of creation: 2012
Date of revision:
Handle: RePEc:ven:wpaper:2012_14

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Related research

Keywords: Multiproduct firm; monopolistic competition; product scope; cost asymmetry.;

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  1. Eckel, Carsten & Neary, J Peter, 2006. "Multi-Product Firms and Flexible Manufacturing in the Global Economy," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5941, C.E.P.R. Discussion Papers.
  2. Paul Allanson & Catia Montagna, 1999. "Multiproduct Firms and Market Structure: An Explorative Application to the Product Life Cycle," Dundee Discussion Papers in Economics, Economic Studies, University of Dundee 101, Economic Studies, University of Dundee.
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Cited by:
  1. Etro, Federico, 2013. "Advertising and search engines. A model of leadership in search advertising," Research in Economics, Elsevier, Elsevier, vol. 67(1), pages 25-38.

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