Natural Oligopolies: A Vertical Differentiation Model

Posted: 8 Dec 2000

See all articles by Rim Lahmandi-Ayed

Rim Lahmandi-Ayed

University of Tunis - Ecole Polytechnique de Tunisie

Abstract

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

Lahmandi-Ayed, Rim, Natural Oligopolies: A Vertical Differentiation Model. International Economic Review, Vol. 41, No. 4, November 2000, Available at SSRN: https://ssrn.com/abstract=247490

Rim Lahmandi-Ayed (Contact Author)

University of Tunis - Ecole Polytechnique de Tunisie ( email )

B.P. 743
La Marsa, 2078
Tunisia

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