Endogenous number of firms, horizontal concentration and heterogeneity of firms—A note

Markus Thomas Münter

Economics Letters, 2017, vol. 154, issue C, 74-76

Abstract: We re-examine implications of heterogeneity of firms under a Cournot setting on free entry equilibria concerning the number of firms. Heterogeneity reduces the number of firms in equilibrium—the larger the cost asymmetries, the smaller the free entry equilibrium number of firms in an industry.

Keywords: Endogenous market structure; Heterogeneity; Number of firms; Size distribution of firms; ​Cournot–Nash-equilibria (search for similar items in EconPapers)
JEL-codes: L1 L11 L22 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:154:y:2017:i:c:p:74-76

DOI: 10.1016/j.econlet.2017.02.034

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