TY - UNPB
T1 - Oligopoly in a Salop circle with centre
AU - Madden, Paul
AU - Pezzino, Mario
PY - 2007
Y1 - 2007
N2 - We study an oligopolistic market in which consumers located around the perimeter of a Salopcircle buy either from firms around this perimeter (providing horizontally differentiatedgoods) or from a firm located at the centre of the circle (providing a homogeneous good forconsumers). An entry-pricing game is studied. The market equilibria and social optimaindicate various possible market failures, some more extreme than the standard Salopexcessive product differentiation. Moreover, for some parameters, the standard Salop resultmight be reversed.
AB - We study an oligopolistic market in which consumers located around the perimeter of a Salopcircle buy either from firms around this perimeter (providing horizontally differentiatedgoods) or from a firm located at the centre of the circle (providing a homogeneous good forconsumers). An entry-pricing game is studied. The market equilibria and social optimaindicate various possible market failures, some more extreme than the standard Salopexcessive product differentiation. Moreover, for some parameters, the standard Salop resultmight be reversed.
KW - differentiated products, homogenous product, social optimum
M3 - Working paper
T3 - University of Manchester, Economics Discussion Paper Series
BT - Oligopoly in a Salop circle with centre
CY - The BE Journal of Economic Analysis & Policy, Forthcoming
ER -