Autore
Lewis, Andrew

Titolo
On technological differences in oligopolistic industries
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1996 - Fascicolo: 16 - Pagina iniziale: 1 - Pagina finale: 18

A two-stage game is studied in which firms choose their technology in the first stage and set quantities in the second. The choice is between high fixed/low marginal and low fixed /higher marginal costs. When quantities are chosen non-cooperatively, an increase in the number of firms in the market can lead to higher equilibrium profits for all firm types. If, instead , firms collude in the second stage they will tend to prefer technologies with higher fixed costs and subsequently lower marginal costs. The effect of an increase in competition on th e colluding firm s depends critically on this fixed cost and the corresponding equilibrium market structure.



Testo completo: http://hdl.handle.net/1814/587

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