Economics at your fingertips  

Soft-Capacity constrained price competition with entry and a minimum firm size: Chamberlin without differentiation

Marie-Laure Cabon-Dhersin () and Nicolas Drouhin ()
Additional contact information
Marie-Laure Cabon-Dhersin: CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université

Working Papers from HAL

Abstract: We consider a model of price competition in a homogeneous good, with soft-capacity constraints, in the special case of a Sone-Geary production function that implies a minimum firm size and leads to a U-shaped average cost function. We study free entry and obtain a Chamberlin-like result: zero profit and a positive markup at equilibrium.

Keywords: price competition; soft-capacity constraint; tacit collusion; returns to scale; free-entry (search for similar items in EconPapers)
Date: 2020-07-31
New Economics Papers: this item is included in nep-bec and nep-com
Note: View the original document on HAL open archive server:
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

Page updated 2021-09-14
Handle: RePEc:hal:wpaper:hal-02909801