Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159213
Authors: 
Lambertini, Luca
Cellini, Roberto
Year of Publication: 
2000
Series/Report no.: 
Quaderni - Working Paper DSE 372
Abstract: 
We investigate a differential oligopoly game where firms compete in account Market whose demand function is always downward sloping but can take any degree of curvature. There exist two economically meaningful saddle points, one dictated by demand conditions, the other by the Ramsey rule. In steady state, optimal capital is non-decreasing in market size. Then we show that the socially efficient output is independent of the curvature of market demand. This entails that the welfare loss associated to the Cournot equilibrium decreases as market size increases.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper
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