The welfare effects of entry: the role of theinput market

In a successive Cournot oligopoly, we show the welfare effects of entry inthe final goods market with no scale economies but with cost difference between thefirms. If the input market is very concentrated, entry in the final goods market alwaysincreases welfare. If the input market is moderately concentrated, entry in the finalgoods market reduces welfare if the entrant is moderately cost inefficient than theincumbents. If the input market is highly competitive, entry in the final goods marketreduces welfare if the entrant is very much cost inefficient than the incumbents.Hence, entry in the final goods market is more desirable under a concentrated inputmarket...

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Year of publication:	2008-12-01
Authors:	Mukherjee, Arijit ; Broll, Udo ; Mukherjee, Soma
Institutions:	University <Nottingham> / Department of Economics
Published in:	The University of Nottingham / School of Economics - discussion papers Discussion PaperNo. 08/12
Subject:	Beitritt \| Wohlfahrt \| Welfarism \| Kapitalprofit \| Input-Output-Modell \| Input-Output-Model \| Vertikale Übertragung \| vertical structure

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Extent:	80896 bytes 25 p. application/pdf
Type of publication:	Book / Working Paper
Language:	English
Classification:	L13 - Oligopoly and Other Imperfect Markets ; L50 - Regulation and Industrial Policy. General ; Specific management methods ; Sociological and psychological aspects ; Individual Reports, Studies ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005868569