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Oligopolistic Competition, Product Variety, Entry Deterrence, and Technology Transfer

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  • Jonathan Eaton
  • Henryk Kierzkowski

Abstract

This article develops a model of industrial structure and product variety when tastes are diffuse and when a firm must incur a fixed cost and design a product before producing. Pricing and output decisions occur subsequently. While standard Cournot-Nash and Bertrand-Nash equilibrium concepts typically fail to identify a unique equilibrium among a given set of producers, consistent conjectures determine a unique equilibrium. One aspect of this equilibrium is that consumers typically benefit from having majority tastes.

Suggested Citation

  • Jonathan Eaton & Henryk Kierzkowski, 1984. "Oligopolistic Competition, Product Variety, Entry Deterrence, and Technology Transfer," RAND Journal of Economics, The RAND Corporation, vol. 15(1), pages 99-107, Spring.
    • Handle: RePEc:rje:randje:v:15:y:1984:i:spring:p:99-107
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    Cited by:

    1. Lionel Fontagné & Michaël Freudenberg & Deniz Ünal, 1995. "Régionalisation et échanges de biens intermédiaires," Working Papers 1995-11, CEPII research center.
    2. Jonathan H. Hamilton & W. Bentley MacLeod & Jacques-François Thisse, 1991. "Spatial Competition and the Core," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(3), pages 925-937.
    3. G. Nesdale, 1996. "Tariffs and Intra-Industry Trade," Economics Discussion / Working Papers 96-11, The University of Western Australia, Department of Economics.

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