Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/73456 
Authors: 
Year of Publication: 
2009
Series/Report no.: 
BGPE Discussion Paper No. 69
Publisher: 
Friedrich-Alexander-Universität Erlangen-Nürnberg, Bavarian Graduate Program in Economics (BGPE), Nürnberg
Abstract: 
In the homogenous good case, the relationship between market struc- ture and efficiency was studied extensively. Assuming a standard quadratic utility with quantity competition, this paper carries on the analysis in a differentiated good context. It can be shown that there is a positive re- lationship between market heterogeneity and efficiency, too. In contrast to the homogenous good case, consumer surplus as well as producer surplus increases with the dispersion of marginal costs.
Subjects: 
Differentiated goods
Cournot
Asymmetric costs
Cost variation
Welfare
JEL: 
L13
L11
L4
Document Type: 
Working Paper

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