Cost arrangement and welfare in a multi-product Cournot oligopoly

Harvey Lapan and David Hennessy

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: Welfare in a two-product Cournot oligopoly is shown to increase (decrease) with an increase in correlation between unit costs when the outputs complement (substitute) in demand. A more qualified correlation structure is required for the result to apply in a three-product Cournot oligopoly when products complement in demand.

Date: 2004-10-23
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Working Paper: Cost Arrangement and Welfare in a Multi-Product Cournot Oligopoly (2004)
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