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Welfare Enhancing Coordination in Consumer Cooperatives under Mixed Oligopoly

Author

Listed:
  • Marco Marini

    () (Department of Computer, Control and Management Engineering, Università "La Sapienza" Roma)

  • Paolo Polidori

    () (Department of Law, University of Urbino “Carlo Bo”)

  • Alberto Zevi

    () (University of Rome "La Sapienza".)

  • Désirée Teobaldelli

    () (Department of Law, University of Urbino “Carlo Bo”)

Abstract

The aim of this paper is to study the welfare e¤ects of consumer cooperatives in mixed oligopoly markets. We show that under decreasing returns to scale and su¢ ciently high market competition these rms can contribute more to social welfare when acting on behalf of all consumers rather than only one representative consumer. This is because, by coordinating the preferences of consumers, these rms reduce their excessive market output, helping the market to come closer to the rst-best. In all other cases we show that such consumers coordination is not required to improve welfare.

Suggested Citation

  • Marco Marini & Paolo Polidori & Alberto Zevi & Désirée Teobaldelli, 2013. "Welfare Enhancing Coordination in Consumer Cooperatives under Mixed Oligopoly," Working Papers 1303, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2013.
  • Handle: RePEc:urb:wpaper:13_03
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    References listed on IDEAS

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    Cited by:

    1. Cho, Sumi & Lee, Sang-Ho, 2017. "Subsidization Policy on the Social Enterprise for the Underprivileged," MPRA Paper 84411, University Library of Munich, Germany.
    2. Tomori, Françeska, 2018. "Mixed Duopoly in Education with Vouchers," Working Papers 2072/306548, Universitat Rovira i Virgili, Department of Economics.

    More about this item

    Keywords

    Consumer-owned Firms; Mixed Oligopoly; Collusion; Welfare;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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