dc.contributor.author | Zhao, Jingang | eng |
dc.contributor.author | Wang, X. H. (X. Henry), 1962- | eng |
dc.date.issued | 2007 | eng |
dc.description.abstract | This paper establishes three new results for multiproduct oligopolies: 1) it presents the first explicit expression of Nash equilibria for asymmetric multiproduct oligopolies; 2) it shows that reducing a multiproduct firm's cost in Bertrand oligopolies will reduce its profits if the cost-reducing unit is sufficiently small; and 3) it demonstrates that a multiproduct firm has no incentive to eliminate a product whose sales are zero. Because a single-product firm whose sales are zero is indifferent between exiting and staying, and its cost reductions always increase its profits, our results are unique to the multiproduct firm, and they suggest that extending oligopoly studies from a single product to multi-products could be as significant as the extension of calculus from a single variable to multi-variables. | eng |
dc.identifier.citation | Department of Economics, 2007 | eng |
dc.identifier.uri | http://hdl.handle.net/10355/2601 | eng |
dc.publisher | Department of Economics | eng |
dc.relation.ispartof | Economics publications | eng |
dc.relation.ispartofcommunity | University of Missouri-Columbia. College of Arts and Sciences. Department of Economics | eng |
dc.relation.ispartofseries | Working papers (Department of Economics);WP 07-03 | eng |
dc.source.uri | http://economics.missouri.edu/working-papers/2007/wp0703_wang.pdf | eng |
dc.subject | Effect of cost reduction | eng |
dc.subject | multiproduct oligopoly | eng |
dc.subject | price competition | eng |
dc.subject | quantity competition | eng |
dc.subject.lcsh | Cost control | eng |
dc.subject.lcsh | Industrial concentration | eng |
dc.subject.lcsh | Oligopolies | eng |
dc.subject.lcsh | Open price systems | eng |
dc.subject.lcsh | Competition -- Quantity | eng |
dc.title | Why Are Firms Sometimes Unwilling to Reduce Costs? | eng |
dc.type | Working Paper | eng |