Ino, Hiroaki; Matsumura, Toshihiro - School of Economics, Kwansei Gakuin University - 2009
We investigate the relationship between the Herfindahl-Hirschman Index (HHI) and welfare. First, we discuss the model wherein m leaders and N - m followers compete. Daughety (1990) finds that under linear demand and constant marginal cost, the Stackelberg model yields larger welfare and HHI than...