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Multiproduct Cournot oligopoly
Author(s) -
Johnson Justin P.,
Myatt David P.
Publication year - 2006
Publication title -
the rand journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.687
H-Index - 108
eISSN - 1756-2171
pISSN - 0741-6261
DOI - 10.1111/j.1756-2171.2006.tb00032.x
Subject(s) - cournot competition , oligopoly , product (mathematics) , product line , quality (philosophy) , industrial organization , microeconomics , business , product differentiation , welfare , carry (investment) , economics , manufacturing engineering , engineering , market economy , mathematics , philosophy , geometry , epistemology , finance
We study a Cournot industry in which each firm sells multiple quality‐differentiated products. We use an upgrades approach, working not with the actual products but instead with upgrades from one quality to the next. The properties of single‐product models carry over to the supply of upgrades, but not necessarily to the supply of complete products. Product line determinants and welfare results are presented. Strategic commitment to product lines is considered; firms may well choose to compete head‐to‐head.