IDEAS home Printed from https://ideas.repec.org/a/ier/iecrev/v29y1988i3p451-59.html
   My bibliography  Save this article

Comparative Statics for Oligopoly: Demand Shift Effects

Author

Listed:
  • Quirmbach, Herman C

Abstract

When demand rises in an imperfectly competitive industry, price, output, profits, consumer surplus, and welfare may individually rise or fall. The possibilities are thus broader than with either a demand shift under competition or a cost shift in either typ e of industry. Systematic relationships are established showing, howe ver, that the pattern of effects cannot be arbitrary. Imperfect compe tition is necessary for profits to fall when demand rises-profits alw ays rise with either perfect competition or perfect collusion. This a gain contrasts with the cost shift case, where imperfect competition is not necessary for perverse profit effects. Copyright 1988 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Quirmbach, Herman C, 1988. "Comparative Statics for Oligopoly: Demand Shift Effects," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 451-459, August.
    • Handle: RePEc:ier:iecrev:v:29:y:1988:i:3:p:451-59
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0020-6598%28198808%2929%3A3%3C451%3ACSFODS%3E2.0.CO%3B2-B&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Holloway, Garth J., 1992. "Consistent Conjectures In Symmetric Equilibria," Working Papers 225873, University of California, Davis, Department of Agricultural and Resource Economics.
    2. Boone, Jan & Müller, Wieland, 2012. "The distribution of harm in price-fixing cases," International Journal of Industrial Organization, Elsevier, vol. 30(2), pages 265-276.
    3. Alex Dickson & Ian A. MacKenzie & Petros G. Sekeris, 2022. "Non‐linear revenue evaluation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(5), pages 487-505, November.
    4. David, Maia & Nimubona, Alain-Désiré & Sinclair-Desgagné, Bernard, 2011. "Emission taxes and the market for abatement goods and services," Resource and Energy Economics, Elsevier, vol. 33(1), pages 179-191, January.
    5. Céline Azémar & Rodolphe Desbordes & Paolo Melindi‐Ghidi & Jean‐Philippe Nicolaï, 2022. "Winners and losers of the COVID‐19 pandemic: An excess profits tax proposal," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(5), pages 1016-1038, October.
    6. Holloway, Garth J., 1993. "Admissible Conjectures and Consistent Conjectures," 1993 Annual Meeting, August 1-4, Orlando, Florida 271403, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Weerahewa, Jeevika, 2003. "Estimating Market Power of Tea Processing Sector," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 5, pages 1-15.
    8. Mario Tello, 1992. "Precios relativos, producción interna y exportaciones en modelos de competencia imperfecta doméstica y mercados segmentados," Documentos de Trabajo / Working Papers 1992-107, Departamento de Economía - Pontificia Universidad Católica del Perú.
    9. Grimm Veronika & Zöttl Gregor, 2010. "Price Regulation under Demand Uncertainty," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-34, June.
    10. Corchon, Luis C. & Fradera, Isabel, 2002. "Comparative statics in Cournot free entry equilibrium," Mathematical Social Sciences, Elsevier, vol. 44(2), pages 155-168, November.
    11. Arghya Ghosh & Alberto Motta, 2011. "Outsourcing with Heterogeneous Firms," Discussion Papers 2011-09, School of Economics, The University of New South Wales.
    12. Hamilton, Stephen F., 1999. "Demand shifts and market structure in free-entry oligopoly equilibria," International Journal of Industrial Organization, Elsevier, vol. 17(2), pages 259-275, February.
    13. Chen, Kevin Z. & Weerahewa, Jeevika, 1998. "Regulation, Market Power, And Advertising Effectiveness," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), pages 1-9, October.
    14. Yuqing Zheng & Harry Kaiser, 2010. "Nonparallel demand increases in an asymmetric Cournot oligopoly," Applied Economics Letters, Taylor & Francis Journals, vol. 17(9), pages 829-833.
    15. Simon GB Cowan & Simon Cowan, 2004. "Demand shifts and imperfect competition," Economics Series Working Papers 188, University of Oxford, Department of Economics.
    16. Holloway, Garth J., 1995. "Conjectural Variations With Fewer Apologies," Working Papers 225880, University of California, Davis, Department of Agricultural and Resource Economics.
    17. Holloway, Garth J., 1992. "The Representative Firm, Endogenous Output Decisions And Consistent Conjectural Variations In Oligopoly," Working Papers 225876, University of California, Davis, Department of Agricultural and Resource Economics.
    18. Holloway, Garth J., 1994. "Consistent Comparative Statics For The Food Industries," 1994 Annual Meeting, August 7-10, San Diego, California 271418, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Mr. Marco Terrones & Mr. Luis Catão, 2000. "Determinants of Dollarization: The Banking Side," IMF Working Papers 2000/146, International Monetary Fund.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:29:y:1988:i:3:p:451-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.