Natural Oligopolies : A Vertical Differentiation Model
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.
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|Date of creation:||1996|
|Date of revision:|
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