A Model of Duopoly Suggesting a Theory of Entry Barriers
AbstractThe descriptive and empirical literature in Industrial Organization abounds with reference to economies of scale, product differentiation, and absolute advantages in cost or demand enjoyed by some firms over others. In particular, they feature prominently in Bain's list of barriers to entry in. However, textbook models of oligopoly often abstract away from all these features, and assume a homogeneous product with equal constant costs for all firms in the industry. The real-world complexities are confined to informal remarks, suggesting vague modifications of the formal results. This happens even in such outstanding treatments as those of Feller and Scherer.
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Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 125.
Length: 31 pages
Date of creation: 1978
Date of revision:
Other versions of this item:
- Avinash Dixit, 1979. "A Model of Duopoly Suggesting a Theory of Entry Barriers," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 10(1), pages 20-32, Spring.
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