by Claude d’Aspremont (Author), Rodolphe Dos Santos Ferreira (Author)
About this Book
This book provides a methodology for the analysis of oligopolistic markets from an equilibrium viewpoint, considering competition within and between groups of firms. It proposes a well-founded measure of competitive toughness that can be used in empirically relevant applications. This measure reflects the weight put by each firm on competition for market share relative to competition for market size – two dimensions of competition involving conflicting and convergent interests, respectively. It further explores several applications, such as the effect of tougher competition on innovation and of output market power on the emergence of involuntary unemployment, as well as the importance of strategic interactions for investment decisions.
Relative to the dominant model of monopolistic competition, The Economics of Competition, Collusion and In-between aims to explore an alternative tractable model of firm competition opening the application of oligopoly theory to many fields in economics where general equilibrium features are crucial. It will be relevant to those interested in applied industrial organization, trade, macroeconomics (in particular macrodynamics) and quantitative economics.
Brief Contents
1 Modelling the Intensity of Competition 1
1 Cournot and Bertrand: Competition Regimes and Competitive Conduct 3
2 Implementing Cournot Through Facilitating Practices 9
3 Product Differentiation 14
4 Concentration and Market Power 25
References 31
2 Competition for Market Share and for Market Size 35
1 The Canonical Model 38
2 Introducing Ford Effects 51
3 Back to the Homogeneous Good Case: Comparison with Alternative Approaches 56
4 The Effects of Intensifying Competition: Two Applications of the Model 69
References 75
3 Competition within and Between Groups of Firms 79
1 Simplifying Firms’ Conjectures 82
2 Multiproduct Cournotian Competition 91
3 Group-Specific Competitive Conduct 102
References 110
4 Extensions 115
1 Adding a Labour Market 118
2 TheDynamicsof Investment Decisions: The Importance of Being Strategic 126
3 Localised Competition and Delegation 137
4 AsaConclusion 151
References 152
Index 157
ASIN : B095BMBCGB
Publisher : Palgrave Macmillan; 1st ed. 2021 edition (May 18, 2021)
Language : English
Pages : 179
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