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The Dynamics of Oligopoly Behavior: A Study of the US Cigarette Industry, 1955-90

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  • Donald Smythe

Abstract

This paper uses the comparative statics method of testing for a monopoly equilibrium to track the competitiveness of the US cigarette industry between 1955 and 1990. The degree of competition ranged from somewhat less than a Coumot-Nash equilibrium would imply to somewhat more. Although the industry's behavior was highly autocorrelated, there were periodic reversions to behavior that was much more competitive than the trend

Suggested Citation

  • Donald Smythe, 1996. "The Dynamics of Oligopoly Behavior: A Study of the US Cigarette Industry, 1955-90," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 3(2), pages 185-200.
    • Handle: RePEc:taf:ijecbs:v:3:y:1996:i:2:p:185-200
    DOI: 10.1080/758528452
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    Keywords

    Oligopoly; Cournot; Competitiveness; JEL classifications: LI 3; L66;
    All these keywords.

    JEL classification:

    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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