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A Stackelberg Oligopoly with Nonidentical Firms
Author(s) -
Pal Debashis,
Sarkar Jyotirmoy
Publication year - 2001
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/1467-8586.00123
Subject(s) - stackelberg competition , counterintuitive , oligopoly , microeconomics , economics , profit (economics) , industrial organization , cournot competition , philosophy , epistemology
This paper extends the Stackelberg model to include any number of nonidentical firms and demonstrates significant counterintuitive results. For example, entry of an additional firm may increase the quantities and/or profits of some existing firms; it may also increase the total industry profit.