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Leader, Or Just Dominant? The Dominant-Firm Model Revisited

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  • M von der Fehr, Nils-Henrik

    (Dept. of Economics, University of Oslo)

Abstract

I revisit the dominant-firm model and discuss its implicit assumption of a sequential move structure. I argue that a simultaneous move structure is often more reasonable and derive an alternative formulation of the model based on this approach.

Suggested Citation

  • M von der Fehr, Nils-Henrik, 2011. "Leader, Or Just Dominant? The Dominant-Firm Model Revisited," Memorandum 15/2010, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2010_015
    as

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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2010/Memo-15-2010.pdf
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    References listed on IDEAS

    as
    1. David Besanko & Ulrich Doraszelski, 2004. "Capacity Dynamics and Endogenous Asymmetries in Firm Size," RAND Journal of Economics, The RAND Corporation, vol. 35(1), pages 23-49, Spring.
    2. Raymond J. Deneckere & Dan Kovenock, 1992. "Price Leadership," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(1), pages 143-162.
      • Raymond Deneckere & Dan Kovenock, 1988. "Price Leadership," Discussion Papers 773, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    3. Péter Eső & Volker Nocke & Lucy White, 2010. "Competition for scarce resources," RAND Journal of Economics, RAND Corporation, vol. 41(3), pages 524-548, September.
    4. Daughety, Andrew F, 1990. "Beneficial Concentration," American Economic Review, American Economic Association, vol. 80(5), pages 1231-1237, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    dominant…firm; monopoly with fringe; sequential moves;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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