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ASYMMETRIC MULTIPRODUCT FIRMS, PROFITABILITY AND WELFARE

Symeonidis, George (2009) 'ASYMMETRIC MULTIPRODUCT FIRMS, PROFITABILITY AND WELFARE.' Bulletin of Economic Research, 61 (2). pp. 139-150. ISSN 0307-3378

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Abstract

In a differentiated multiproduct Cournot duopoly with linear demand, industry profit usually falls (even though concentration rises) when the distribution of products across firms becomes more asymmetric, if the products are not very differentiated or the total number of products is large. Consumer surplus and overall welfare always fall as the degree of asymmetry increases. These results contrast with the conventional wisdom on the effects of firm heterogeneity and the links between concentration and industry profits. © 2009 The Author. Journal compilation © 2009 Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research.

Item Type: Article
Uncontrolled Keywords: firm heterogeneity; multiproduct firms; profitability; welfare; L13; D43
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 16 Aug 2012 10:27
Last Modified: 18 Aug 2022 11:13
URI: http://repository.essex.ac.uk/id/eprint/3681

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