Partisan competition authorities, Cournot‐oligopoly, and endogenous market structure.

The so‐called excess‐entry theorem establishes conditions guaranteeing that more firms enter a homogeneous Cournot‐oligopoly in equilibrium than a benevolent government prefers. We generalize the approach and analyze the behavior of a competition authority, which attaches different weights to the fi...

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Detalles Bibliográficos
Publicado en:Southern Economic Journal Vol. 89; no. 1; pp. 238 - 271
Formato: Artículo
Publicado: Wiley-Blackwell Jul2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jul2022
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      pub: Wiley-Blackwell
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        10.1002/soej.12593
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      tig:
        atl: Partisan competition authorities, Cournot‐oligopoly, and endogenous market structure.
      aug:
      su:
        Partisanship
        Consumers
        Market design & structure (Economics)
      sug:
        subj:
          Partisanship
          Consumers
          Market design & structure (Economics)
      keyword:
        competition authority
        Cournot‐oligopoly
        excessive entry
        monopoly
        partisan objective
        competition authority
        Cournot‐oligopoly
        excessive entry
        monopoly
        partisan objective
      ab: The so‐called excess‐entry theorem establishes conditions guaranteeing that more firms enter a homogeneous Cournot‐oligopoly in equilibrium than a benevolent government prefers. We generalize the approach and analyze the behavior of a competition authority, which attaches different weights to the firms' and consumers' payoffs, with welfare‐maximization constituting a special case. The greater the importance of consumers, the less likely entry restrictions are, whereas a greater relevance of firms makes a monopoly more probable. The nature of entry restrictions also depends on the competition authority's instruments. The essential insights continue to apply if firms are heterogeneous concerning costs and the timing of output choices.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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