Natural Oligopolies: A Vertical Differentiation Model
Posted: 8 Dec 2000
This article contains a more complete characterization of conditions under which vertically differentiated markets are or are not natural oligopolies than has been found previously in the literature. Specifically, previous results on markets in which firms have cost functions with constant returns are incomplete; these results are expanded. Moreover, results are provided for markets with firms having increasing or decreasing marginal cost functions.
Suggested Citation: Suggested Citation