IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00670928.html
   My bibliography  Save this paper

Sustainable Oligopolies

Author

Listed:
  • Gabrielle Demange

    (CECO - Laboratoire d'économétrie de l'École polytechnique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Dominique Henriet

    (CNET - Centre national d'études des télécommunications - Ministère des télécommunications)

Abstract

In this paper, we show that an oligopoly market where both increasing returns to scale and competition are present can nevertheless satisfy stability conditions. In a sustainable oligopoly (1) each consumer chooses the firm which proposes the price-quality schedule he prefers (2) firms earn non-negative profits (3) no new firm could attract consumers and make profits. We prove that such a sustainable oligopoly exists under rather weak assumptions. The results apply to most models of vertical or horizontal product differentiation or to models of quality differentiation due to congestion effects.

Suggested Citation

  • Gabrielle Demange & Dominique Henriet, 1991. "Sustainable Oligopolies," Post-Print halshs-00670928, HAL.
    • Handle: RePEc:hal:journl:halshs-00670928
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Demange, Gabrielle, 2024. "Stable outcomes in simple cooperative games," Journal of Mathematical Economics, Elsevier, vol. 111(C).
    2. Andrea Robbett, 2015. "Voting with hands and feet: the requirements for optimal group formation," Experimental Economics, Springer;Economic Science Association, vol. 18(3), pages 522-541, September.
    3. Gabrielle Demange, 2017. "The stability of group formation," Revue d'économie politique, Dalloz, vol. 127(4), pages 495-516.
    4. Melatos, Mark & Woodland, Alan, 2007. "Endogenous trade bloc formation in an asymmetric world," European Economic Review, Elsevier, vol. 51(4), pages 901-924, May.
    5. Jean J. Gabszewicz & Jacques-François Thisse, 2000. "Microeconomic theories of imperfect competition," Cahiers d'Économie Politique, Programme National Persée, vol. 37(1), pages 47-99.
    6. Segendorff, Björn, 1995. "The Telecommunication Market: A Survey of Theory and Empirics," Working Paper Series 442, Research Institute of Industrial Economics.
    7. Dominique Peeters & Jacques Thisse & Isabelle Thomas, 1998. "Transportation networks and the location of human activities," ERSA conference papers ersa98p268, European Regional Science Association.
    8. Staab, Manuel, 2019. "The Formation of Social Groups under Status Concern," MPRA Paper 97114, University Library of Munich, Germany.

    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:hal:journl:halshs-00670928. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.