Author : Amarjyoti Mahanta
Publisher :
ISBN 13 :
Total Pages : 16 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Price Competition in a Mixed Oligopoly Market by : Amarjyoti Mahanta
Download or read book Price Competition in a Mixed Oligopoly Market written by Amarjyoti Mahanta and published by . This book was released on 2016 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Several studies on mixed oligopoly indicate that the ownership pattern of firms does not affect the equilibrium price. This idea often suggests that ownership is irrelevant. In a mixed duopoly under price competition, firm ownership is irrelevant. This study reveals that ownership is irrelevant in a single publicly owned firm and in any positive number of privately owned firms. However, if two or more publicly owned firms exist, then ownership becomes relevant in a homogeneous good market with a strictly increasing convex cost schedule and a downward sloping demand curve. If firms set the price sequentially and if the lone public firm is a price leader, then social welfare is constantly greater than when the latter is a price follower. The unique price is the competitive price when the public firm moves first in the sequential game.