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SSRN Electronic Journal

Article . 2018 . Peer-reviewed

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The Utility Competition, Price Competition and Quantity Competition

Name: The Utility Competition, Price Competition and Quantity Competition
Creator: Linfeng Chen
Keywords: 8. Economic growth

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type 01 Jan 2018Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

Authors: Linfeng Chen;

doi: 10.2139/ssrn.3320958

The Utility Competition, Price Competition and Quantity Competition

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Abstract

We propose a framework of utility competition (UC), and we provide the intuition why price competition (PC), quantity competition (QC) and UC differ, and prove it by using a nonlinear demand system. If the network externality is positive, then PC is the most efficient with the lowest equilibrium price, QC is the least efficient, and UC is in the middle. While if the externality is negative, then UC is the most efficient with the lowest equilibrium price, QC is still the least efficient, and PC is in the middle. We also rank the profits.

Related Organizations

Changzhou Institute of Technology
China (People's Republic of)

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