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Retails and Wholesale Margins in Successive Cournot Oligopolies


  • Choe, Chongwoo


This paper studies the determination of retail and wholesale prices in successive Cournot oligopolies. It is shown that (i) the ratio of retail to wholesale margins increases (decreases, resp.) as the retail part of the market becomes less (more, resp.) competitive; (ii) the ratio of margin in one part of the market to total margin increases (decreases, resp.) as that part of the market becomes less (more, resp.) competitive; (iii) the decline in final consumer price is larger (smaller, resp.) if the entry of additional firm occurs in less (more, resp.) competitive part of the market. The results of the paper are applied to the case of third degree price discrimination. Copyright 1999 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Suggested Citation

  • Choe, Chongwoo, 1999. "Retails and Wholesale Margins in Successive Cournot Oligopolies," Australian Economic Papers, Wiley Blackwell, vol. 38(1), pages 1-8, March.
  • Handle: RePEc:bla:ausecp:v:38:y:1999:i:1:p:1-8

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    References listed on IDEAS

    1. Molana, Hassan & Moutos, Thomas, 1992. "A Note on Taxation, Imperfect Competition and the Balanced Budget Multiplier," Oxford Economic Papers, Oxford University Press, vol. 44(1), pages 68-74, January.
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    Cited by:

    1. Tsuruta, Yoshitaka, 2008. "What affects intranational price dispersion?: The case of Japanese gasoline prices," Japan and the World Economy, Elsevier, vol. 20(4), pages 563-584, December.

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