Get 20M+ Full-Text Papers For Less Than $1.50/day. Subscribe now for You or Your Team.

Learn More →

MIXED DUOPOLY, PRODUCT DIFFERENTIATION AND COMPETITION*

MIXED DUOPOLY, PRODUCT DIFFERENTIATION AND COMPETITION* We examine the relationship between the equilibrium price and the degree of product differentiation in a mixed duopoly in which a welfare‐maximizing public enterprise competes against a profit‐maximizing private firm. Existing works on private economy show that increased product differentiation mitigates price competition. We find that, in a mixed economy, increased product differentiation can accelerate competition when the demand is elastic. The private firm chooses to locate itself too close to the public firm (and thus makes the resulting degree of product differentiation too low) for social welfare, which never appears in the private economy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Manchester School Wiley

MIXED DUOPOLY, PRODUCT DIFFERENTIATION AND COMPETITION*

Loading next page...
 
/lp/wiley/mixed-duopoly-product-differentiation-and-competition-A6pJZmCcFf

References (39)

Publisher
Wiley
Copyright
© 2013 John Wiley & Sons Ltd and The University of Manchester
ISSN
1463-6786
eISSN
1467-9957
DOI
10.1111/j.1467-9957.2012.02329.x
Publisher site
See Article on Publisher Site

Abstract

We examine the relationship between the equilibrium price and the degree of product differentiation in a mixed duopoly in which a welfare‐maximizing public enterprise competes against a profit‐maximizing private firm. Existing works on private economy show that increased product differentiation mitigates price competition. We find that, in a mixed economy, increased product differentiation can accelerate competition when the demand is elastic. The private firm chooses to locate itself too close to the public firm (and thus makes the resulting degree of product differentiation too low) for social welfare, which never appears in the private economy.

Journal

The Manchester SchoolWiley

Published: Jan 1, 2013

There are no references for this article.