TY - JOUR
T1 - Competition for market share or for market size
T2 - oligopolistic equilibria with varying competitive toughness
AU - D'Aspremont, Claude
AU - Ferreira, Rodolphe dos Santos
AU - Gérard-Varet, Louis André
PY - 2007/8
Y1 - 2007/8
N2 - For an industry producing a composite commodity, we propose a comprehensive concept of oligopolistic equilibrium, allowing for a parameterized continuum of regimes varying in competitive toughness. Each firm sets simultaneously its price and its quantity under two constraints, relative to its market share and to market size. The price and the quantity equilibrium outcomes always belong to the set of oligopolistic equilibria. When firms are identical and we let their number increase, any sequence of symmetric oligopolistic equilibria converges to the monopolistic competition outcome. Further results are derived in the symmetric CES case, concerning in particular the collusive solution enforceability.
AB - For an industry producing a composite commodity, we propose a comprehensive concept of oligopolistic equilibrium, allowing for a parameterized continuum of regimes varying in competitive toughness. Each firm sets simultaneously its price and its quantity under two constraints, relative to its market share and to market size. The price and the quantity equilibrium outcomes always belong to the set of oligopolistic equilibria. When firms are identical and we let their number increase, any sequence of symmetric oligopolistic equilibria converges to the monopolistic competition outcome. Further results are derived in the symmetric CES case, concerning in particular the collusive solution enforceability.
UR - http://www.scopus.com/inward/record.url?scp=34547158025&partnerID=8YFLogxK
U2 - 10.1111/j.1468-2354.2007.00444.x
DO - 10.1111/j.1468-2354.2007.00444.x
M3 - Article
AN - SCOPUS:34547158025
SN - 0020-6598
VL - 48
SP - 761
EP - 784
JO - International Economic Review
JF - International Economic Review
IS - 3
ER -