Indeterminate Output Allocations in Collusive Equilibria and Multi-plant Firms
If n colluding oligopolists all have the cost function C(q_i) = c * q_i, then it will not be possible to uniquely allocate among the firms the monopoly output that maximizes their joint profit. Similarly, if all plants of an n-plant firm have the cost function C(q_i) = c * q_i, then it will not be possible to uniquely allocate the firm's optimal output among the n plants. This paper identifies the necessary and sufficient conditions for such "allocative indeterminacies" to occur (i.e., the conditions to be avoided).
|Date of creation:||25 Jul 1995|
|Note:||Type of Document - LaTeX (2.09); prepared on IBM PC; to print on HP LaserJet III (1Mb); pages: 9; figures: none. Only file FTP'ed is the TeX input file. With your Web browser, visit SIUC's Working Paper|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpmi:9507001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.