Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230022
Authors: 
Buchen, Clemens
Palermo, Alberto
Year of Publication: 
2019
Citation: 
[Journal:] Scottish Journal of Political Economy [ISSN:] 1467-9485 [Volume:] 67 [Issue:] 4 [Pages:] 448-453
Abstract: 
We analyse a duopoly setting with complementary products, in which a firm has a bias about its absolute advantage. We show that the bias can internalize parts of the negative externality that the complementarity of goods creates implying a higher producer's surplus. Moreover, we analyse additional conditions, which lead to an increase in the consumer's surplus. Counterintuitively, we show that the presence of a bias can lead to a positive welfare effect.
Subjects: 
Bias
complementary products
oligopoly
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Document Version: 
Published Version

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