Industry profits and market size under bilateral oligopoly

Robin Naylor ()

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: We show that, contrary to the key result of the standard Cournot-Nash oligopoly model, industry profits can increase with the number of firms if input prices are not exogenous but are determined by bargaining in bilateral oligopoly. The relationship between industry profits and market size is shown to depend on the relative bargaining power of the upstream and downstream agents.

Date: 2001
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:200108

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