IDEAS home Printed from https://ideas.repec.org/p/fth/pariem/96.05.html
   My bibliography  Save this paper

Natural Oligopolies : A Vertical Differentiation Model

Author

Listed:
  • Lahmandi-Ayed, R

Abstract

In a vertical differentiation model, we investigate whether the property of finiteness holds when the average cost function depends on the quantity. We prove that this property holds when the cost function has increasing returns. In the case of cost functions with decreasing returns, we prove that the finiteness property does not hold if the average cost tends to zero when the quantity tends to zero.

Suggested Citation

  • Lahmandi-Ayed, R, 1996. "Natural Oligopolies : A Vertical Differentiation Model," Papiers d'Economie Mathématique et Applications 96.05, Université Panthéon-Sorbonne (Paris 1).
  • Handle: RePEc:fth:pariem:96.05
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Auer, Raphael A. & Sauré, Philip, 2017. "Dynamic entry in vertically differentiated markets," Journal of Economic Theory, Elsevier, vol. 167(C), pages 177-205.
    2. Choi, Yoonho & Kwan Choi, E., 2018. "Quality competition in north-south trade," International Journal of Production Economics, Elsevier, vol. 201(C), pages 216-224.
    3. Adel Ben Youssef & Rim Lahmandi-Ayed, 2008. "Eco-labelling, Competition and Environment: Endogenization of Labelling Criteria," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 133-154, October.
    4. Jean-Marc Bonnisseau & Hend Ghazzai, 2005. "Monopole, stratégies multiproduit et incitation à la recherche et développement," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00193974, HAL.
    5. Jean‐Marc Bonnisseau & Rim Lahmandi‐Ayed, 2007. "Vertical differentiation with non‐uniform consumers' distribution," International Journal of Economic Theory, The International Society for Economic Theory, vol. 3(3), pages 179-190, September.
    6. Janko Hernández Cortés & Paolo Morganti, 2022. "Existence and uniqueness of price equilibria in location-based models of differentiation with full coverage," Journal of Economics, Springer, vol. 136(2), pages 115-148, July.
    7. Chen, Yijuan & Hu, Xiangting & Li, Sanxi, 2017. "Quality differentiation and firms’ choices between online and physical markets," International Journal of Industrial Organization, Elsevier, vol. 52(C), pages 96-132.
    8. Amacher, Gregory S. & Koskela, Erkki & Ollikainen, Markku, 2004. "Environmental quality competition and eco-labeling," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 284-306, March.
    9. Raphael Auer & Philip Sauré, 2011. "Spatial Competition in Quality, Demand-Induced Innovation, and Schumpeterian Growth," Working Papers 11.04, Swiss National Bank, Study Center Gerzensee.
    10. WAUTHY, Xavier Y., 2014. "From Bertrand to Cournot via Kreps and Scheinkman: a hazardous journey," LIDAM Discussion Papers CORE 2014026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Rim Lahmandi-Ayed, 2007. "Finiteness property with vertical and horizontal differentiation: does it really matter?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(3), pages 531-548, December.

    More about this item

    Keywords

    OLIGOPOLIES ; VERTICAL INTEGRATION;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fth:pariem:96.05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Krichel (email available below). General contact details of provider: https://edirc.repec.org/data/cerp1fr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.