Technological gap and heterogeneous oligopoly
This paper explores the effect of technological gap on output, profits, market concentration, and social welfare in quantity setting oligopoly with firms of unequal sizes, holding different conjectures, operating with non-identical costs, and producing homogenous products. Assuming firms with relati...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
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2019
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| Online Access: | https://hdl.handle.net/10356/104733 http://hdl.handle.net/10220/48624 |
| _version_ | 1811688166219841536 |
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| author | Huang, Weihong Zhang, Yang |
| author2 | School of Social Sciences |
| author_facet | School of Social Sciences Huang, Weihong Zhang, Yang |
| author_sort | Huang, Weihong |
| collection | NTU |
| description | This paper explores the effect of technological gap on output, profits, market concentration, and social welfare in quantity setting oligopoly with firms of unequal sizes, holding different conjectures, operating with non-identical costs, and producing homogenous products. Assuming firms with relatively advanced technology adopt sophisticated Cournot strategy while the remaining with backward technology behave as price takers, we find that an increase in technological gap between two types of firms may paradoxically lead to higher profits for not only the advanced but also the backward. Moreover, wider technological distance could lead to lower market concentration and be welfare enhancing. |
| first_indexed | 2024-10-01T05:27:53Z |
| format | Journal Article |
| id | ntu-10356/104733 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T05:27:53Z |
| publishDate | 2019 |
| record_format | dspace |
| spelling | ntu-10356/1047332020-03-07T12:10:42Z Technological gap and heterogeneous oligopoly Huang, Weihong Zhang, Yang School of Social Sciences Technological Gap Heterogeneous Oligopoly DRNTU::Social sciences::Economic development This paper explores the effect of technological gap on output, profits, market concentration, and social welfare in quantity setting oligopoly with firms of unequal sizes, holding different conjectures, operating with non-identical costs, and producing homogenous products. Assuming firms with relatively advanced technology adopt sophisticated Cournot strategy while the remaining with backward technology behave as price takers, we find that an increase in technological gap between two types of firms may paradoxically lead to higher profits for not only the advanced but also the backward. Moreover, wider technological distance could lead to lower market concentration and be welfare enhancing. Accepted version 2019-06-11T02:20:29Z 2019-12-06T21:38:29Z 2019-06-11T02:20:29Z 2019-12-06T21:38:29Z 2017 Journal Article Huang, W., & Zhang, Y. (2018). Technological gap and heterogeneous oligopoly. The Quarterly Review of Economics and Finance, 67, 1-7. doi:10.1016/j.qref.2017.02.003 1062-9769 https://hdl.handle.net/10356/104733 http://hdl.handle.net/10220/48624 10.1016/j.qref.2017.02.003 en The Quarterly Review of Economics and Finance © 2017 Board of Trustees of the University of Illinoi. All rights reserved. This paper was published by Elsevier Inc. in The Quarterly Review of Economics and Finance and is made available with permission of Board of Trustees of the University of Illinoi. 20 p. application/pdf |
| spellingShingle | Technological Gap Heterogeneous Oligopoly DRNTU::Social sciences::Economic development Huang, Weihong Zhang, Yang Technological gap and heterogeneous oligopoly |
| title | Technological gap and heterogeneous oligopoly |
| title_full | Technological gap and heterogeneous oligopoly |
| title_fullStr | Technological gap and heterogeneous oligopoly |
| title_full_unstemmed | Technological gap and heterogeneous oligopoly |
| title_short | Technological gap and heterogeneous oligopoly |
| title_sort | technological gap and heterogeneous oligopoly |
| topic | Technological Gap Heterogeneous Oligopoly DRNTU::Social sciences::Economic development |
| url | https://hdl.handle.net/10356/104733 http://hdl.handle.net/10220/48624 |
| work_keys_str_mv | AT huangweihong technologicalgapandheterogeneousoligopoly AT zhangyang technologicalgapandheterogeneousoligopoly |