HOW MANY FIRMS SHOULD BE LEADERS? BENEFICIAL CONCENTRATION REVISITED

Hiroaki Ino and Toshihiro Matsumura

International Economic Review, 2012, vol. 53, issue 4, 1323-1340

Abstract: This article investigates the relationship between the Herfindahl–Hirschman Index (HHI) and welfare in multiple‐leader Stackelberg models. We formulate two long‐run models of free entry of followers; in the first (second) model, leaders select their output before (after) the entry of the followers. We find that in both models, in contrast to the short‐run models, the Stackelberg model yields a larger welfare and HHI than the Cournot model does regardless of the number of leaders; that is, beneficial concentration always occurs.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

Downloads: (external link)
https://doi.org/10.1111/j.1468-2354.2012.00722.x

Related works:
Working Paper: How Many Firms Should Be Leaders? Beneficial Concentration Revisited (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:iecrev:v:53:y:2012:i:4:p:1323-1340

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Michael O'Riordan and Dirk Krueger

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().