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The RAND Journal of Economics
Article . 2006 . Peer-reviewed
License: Wiley TDM
Data sources: Crossref
SSRN Electronic Journal
Article . 2005 . Peer-reviewed
Data sources: Crossref
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Multiproduct Cournot Oligopoly

Authors: Johnson, J; Myatt, D;

Multiproduct Cournot Oligopoly

Abstract

We present a general Cournot model in which each flrm may sell multiple quality-difierentiated products. We use an upgrades approach, working not with the actual products, but instead with upgrades from one quality to the next. The prop- erties of single-product Cournot models carry over to the supply of upgrades, but not necessarily to the supply of complete products. A flrm's product line is determined by the properties of demand, its costs, and competitor characteristics. For symmet- ric flrms, these determinants reduce to returns to quality and changes in demand elasticity as quality increases. For asymmetric flrms whose (potentially endogenous) technological capabilities are deflned by their maximum feasible qualities, gaps in product lines are determined precisely by the capabilities of lesser rivals. Strategic commitment to product lines prior to quantity competition is considered. Incentives to so commit are markedly difierent from those under price-setting models.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
62
Top 10%
Top 10%
Top 10%
Green
bronze