Cost Manipulation in Oligopoly: A Duality Approach

Ngo Long and Antoine Soubeyran

G.R.E.Q.A.M. from Universite Aix-Marseille III

Abstract: This paper analyzes a class of two-stage Cournot games where firms are collusive in the first stage, and shows that oligopolists may have a strong incentive to redistribute resources (such as capital, pollution permits etc...) within the industry as a means of coordinating their output decision. Alternatively, one may think of a government that attempts to maximize social welfare, by setting parameters in stage one, subject to the constraint that in stage two, firms are Cournot oligopolists.

Keywords: OLIGOPOLIES (search for similar items in EconPapers)
JEL-codes: D43 H21 L13 (search for similar items in EconPapers)
Pages: 34 pages
Date: 1998
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Citations: View citations in EconPapers (2)

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Working Paper: Cost Manipulation in Oligopoly: A Duality Approach (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:aixmeq:98a22

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