Competition between Multiproduct Firms with Heterogeneous Costs

Roberto Roson

No 2012_14, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper draws upon Feenstra and Ma (2007, 2008), to develop a model of asymmetric competition between multiproduct firms. The model is used to analyze how cost asymmetry affects the equilibrium, with determination of quantity/price as well as product scope per firm. By treating the number of firms as a continuous variable, the model is extended to account for the endogenous determination of the number of firms in a long-run, monopolistically competitive equilibrium, with free entry by heterogeneous firms.

Keywords: Multiproduct firm; monopolistic competition; product scope; cost asymmetry. (search for similar items in EconPapers)
JEL-codes: D43 L11 L13 (search for similar items in EconPapers)
Pages: 13
Date: 2012
New Economics Papers: this item is included in nep-bec, nep-com, nep-ind and nep-mic
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Citations: View citations in EconPapers (1)

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