Information Acquisition and Relative Efficiency of Competitive, Oligopoly and Monopoly Markets
This paper analyzes the relative efficiency of a competitive equilibrium against Cournot oligopoly and monopoly equilibria when firms have diverse private information about the stochastic market demand. When firms have information of the same precision, the competitive equilibrium yields a larger expected welfare. However, when information is costly, Cournot oligopoly and monopoly firms acquire more information and, hence, may yield a larger expected welfare than the competitive firms under certain conditions. The author also finds that competitive firms acquire less than the efficient level of information while Cournot oligopoly and monopoly firms may acquire more than the efficient level. Copyright 1995 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 36 (1995)
Issue (Month): 2 (May)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |
When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:36:y:1995:i:2:p:325-40. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or ()
If references are entirely missing, you can add them using this form.