On the Microfoundation of Linear Oligopoly Demand

Iwan Bos and Dries Vermeulen

No 4, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)

Abstract: We critically assess the representative consumer model that forms the foundation of a well-known class of linear oligopoly demand structures. It is argued that this approach has several limitations. We present an alternative microeconomic foundation by deriving the same demand system directly from a population of heterogeneous buyers. Our approach can be easily adapted to different demand specifications.

JEL-codes: B40 L10 (search for similar items in EconPapers)
Date: 2019-01-28
New Economics Papers: this item is included in nep-com and nep-ind
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Citations: View citations in EconPapers (2)

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Journal Article: On the Microfoundation of Linear Oligopoly Demand (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2019004

DOI: 10.26481/umagsb.2019004

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