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Profit maximisation and alternatives in oligopolies

Author

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  • Alexander Klemm

    (IFS)

Abstract

This paper analyses oligopolies using the Cournot/Stackelberg framework, but allowing some firms to be pursueing aims other than profit maximisation. The existence of even a single output maximising firm can have dramatic effects on outputs, prices and welfare, even if such a firms faces additional costs.

Suggested Citation

  • Alexander Klemm, 2004. "Profit maximisation and alternatives in oligopolies," Industrial Organization 0409003, EconWPA.
  • Handle: RePEc:wpa:wuwpio:0409003
    Note: Type of Document - pdf; pages: 21
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0409/0409003.pdf
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    More about this item

    Keywords

    profit maximisation; oligopoly; non-profit organisations;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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