Template-Type: ReDIF-Paper 1.0

Author-Name: Jens Jurgan
Author-X-Name-First: Jens
Author-X-Name-Last: Jurgan


Title: Cost Variations in a Differentiated Good Oligopoly

Abstract: In the homogenous good case, the relationship between market struc-
ture and efficiency was studied extensively. Assuming a standard quadratic
utility with quantity competition, this paper carries on the analysis in a
differentiated good context. It can be shown that there is a positive re-
lationship between market heterogeneity and efficiency, too. In contrast
to the homogenous good case, consumer surplus as well as producer
surplus increases with the dispersion of marginal costs.
Length:  33 pages
Creation-Date:  2009-02
File-URL: http://www.bgpe.de/texte/DP/069_jurgan.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 069
Classification-JEL: L13, L11, L4
Keywords: Differentiated goods; Cournot; Asymmetric costs; Cost variation;
Welfare
Handle: RePEc:bav:wpaper:069_jurgan