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A note on market power in bilateral oligopoly

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  • Ludovic A. Julien

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this note we consider a simple bilateral oligopoly model of an exchange economy. We characterize the Cournot-Nash equilibrium and we explore the effectiveness of market power. We provide some measures of relative market power. We show it depends on the relative size of the market and on the ratio of price elasticities of supply. Finally, we study free entry. We show it does not always lead to the competitive equilibrium market outcome.
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Suggested Citation

  • Ludovic A. Julien, 2015. "A note on market power in bilateral oligopoly," Post-Print hal-01385976, HAL.
    • Handle: RePEc:hal:journl:hal-01385976
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    References listed on IDEAS

    as
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    6. Alex Dickson, 2013. "The Effects of Entry in Bilateral Oligopoly," Games, MDPI, vol. 4(3), pages 1-21, June.
    7. Jean J. Gabszewicz, 2002. "Strategic Multilateral Exchange," Books, Edward Elgar Publishing, number 756.
    8. Amir, Rabah & Bloch, Francis, 2009. "Comparative statics in a simple class of strategic market games," Games and Economic Behavior, Elsevier, vol. 65(1), pages 7-24, January.
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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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