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Industry profits and market size under bilateral oligopoly

We show that, contrary to the key result of the standard Cournot-Nash oligopoly model, industry profits can increase with the number of firms if input prices are not exogenous but are determined by bargaining in bilateral oligopoly. The relationship between industry profits and market size is shown to depend on the relative bargaining power of the upstream and downstream agents.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200108.

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Date of creation: 2001
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Handle: RePEc:cns:cnscwp:200108
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  27. Paci, Raffaele & Usai, Stefano, 2000. "Externalities, Knowledge Spillovers And The Spatial Distribution Of Innovation," ERSA conference papers ersa00p104, European Regional Science Association.
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  33. M. Genius & E. Strazzera, 2000. "Evaluation of likelihood based tests for non-nested dichotomus choice contingent valuation models," Working Paper CRENoS 200012, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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  43. P. Piacentini & G. Sulis, 2000. "Investimenti, produttività e occupazione nelle regioni europee: evidenze ed interpretazioni da un'analisi di ''cluster''," Working Paper CRENoS 200015, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  44. S. Lodde, 2000. "Capitale umano e sviluppo economico: cosa sappiamo in teoria e nei fatti?," Working Paper CRENoS 200003, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  45. GB. Concu, 2000. "La tirannia del trade-off sconfitta? Turismo, ambiente naturale e rifiuti solidi urbani: la ricerca di una ''environmental Kuznet Curve''," Working Paper CRENoS 200013, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  46. E. Strazzera & R. Scarpa & G. Hutchinson & S. Chilton, 2000. "Analysis of Mixed Structure Data for Valuation of Forest Resources for Recreation," Working Paper CRENoS 200011, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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  51. C. Antonelli & R. Marchionatti & S. Usai, 2000. "Productivity and External Knowledge: The Italian Case," Working Paper CRENoS 200009, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  52. U. Ciorba & A. Lanza & F. Pauli, 2001. "Kyoto Commitment And Emissions Trading: A European Union Perspective," Working Paper CRENoS 200102, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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