Competition can harm consumers
Duopolists selling differentiated products can generate less consumer surplus than a monopoly selling one of the products. In a Hotelling model where a monopoly supplies more than half of potential consumers, but not all, entry by a rival leads to a duopoly price that is higher than the monopoly pri...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
| Published: |
2006
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| Subjects: |