Inferior Factor in Cournot Oligopoly Revisited
We reconsider the recent work by [Oku10] on (possibly asymmetric) Cournotian firms with two production factors, one of them being inferior. It is shown there that an increase in the price of the inferior factor does raise equilibrium industry output. In addition of providing a simpler and more rigorous proof of such a result, we generalize it to the case of technologies with s = 2 factors and allow some firms not to use the inferior one.
|Date of creation:||Oct 2012|
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- Paolo Bertoletti & Giorgio Rampa, 2013. "On inferior inputs and marginal returns," Journal of Economics, Springer, vol. 109(3), pages 303-313, July.
- Novshek, William., 1984.
"On the Existence of Cournot Equilibrium,"
517, California Institute of Technology, Division of the Humanities and Social Sciences.
- Koji Okuguchi, 2010. "Inferior factor in Cournot oligopoly," Journal of Economics, Springer, vol. 101(2), pages 125-131, October.
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