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We reconsider the recent work by Okuguchi (J Econ 101:125–131, <CitationRef CitationID="CR4">2010</CitationRef>) on (possibly asymmetric) Cournotian firms with two production factors, one being inferior for each firm. It is shown there that an increase in the price of the inferior factor does raise the equilibrium industry output. In...</citationref>
Persistent link: https://www.econbiz.de/10010987607
An input is inferior if and only if an increase in its price raises all marginal productivities. A sufficient condition for input inferiority under quasi-concavity of the production function is then that there are increasing marginal returns with respect to the other input and a non-positive...
Persistent link: https://www.econbiz.de/10010987660
Persistent link: https://www.econbiz.de/10010863086
I analyze the relation between market size and number of firms when an endogenous number of firms chooses the market strategy and (simultaneously or sequentially) an R&D investment. I generalize the linear Cournot model with an endogenous cost-reducing activity and show that, as long as...
Persistent link: https://www.econbiz.de/10010863124