Cost Variations in a Differentiated Good Oligopoly

Jens Jurgan

No 69, Working Papers from Bavarian Graduate Program in Economics (BGPE)

Abstract: In the homogenous good case, the relationship between market struc- ture and efficiency was studied extensively. Assuming a standard quadratic utility with quantity competition, this paper carries on the analysis in a differentiated good context. It can be shown that there is a positive re- lationship between market heterogeneity and efficiency, too. In contrast to the homogenous good case, consumer surplus as well as producer surplus increases with the dispersion of marginal costs.

Keywords: Differentiated goods; Cournot; Asymmetric costs; Cost variation; Welfare (search for similar items in EconPapers)
JEL-codes: L11 L13 L4 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2009-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://bgpe.cms.rrze.uni-erlangen.de/files/2023/0 ... d-Good-Oligopoly.pdf First version, 2009 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:bav:wpaper:069_jurgan

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