Inferior Factor in Cournot Oligopoly Revisited

Paolo Bertoletti () and Pierre Mouche ()

No 5, DEM Working Papers Series from University of Pavia, Department of Economics and Management

Abstract: We reconsider the recent work by [Oku10] on (possibly asymmetric) Cournotian firms with two production factors, one of them being inferior. It is shown there that an increase in the price of the inferior factor does raise equilibrium industry output. In addition of providing a simpler and more rigorous proof of such a result, we generalize it to the case of technologies with s = 2 factors and allow some firms not to use the inferior one.

Pages: 6 pages
Date: 2012-10
New Economics Papers: this item is included in nep-bec and nep-com
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Related works:
Journal Article: Inferior factor in Cournot oligopoly revisited (2014)
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