Natural Oligopolies: A Vertical Differentiation Model

Rim Lahmandi-Ayed

International Economic Review, 2000, vol. 41, issue 4, 971-87

Abstract: This article contains a more complete characterization of conditions under which vertically differentiated markets are or are not natural oligopolies than has been found previously in the literature. Specifically, previous results on markets in which firms have cost functions with constant returns are incomplete; these results are expanded. Moreover, results are provided for markets with firms having increasing or decreasing marginal cost functions. Copyright 2000 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 2000
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Working Paper: Natural Oligopolies: A Vertical Differentiation Model (1996)
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