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A tractable alternative to Cobb-Douglas utility for imperfect competition

Author

Listed:
  • Xiangkang Yin

    (Department of Economics and Finance, La Trobe University)

Abstract

This paper proposes a tractable alternative to Cobb-Douglas utility to resolve the problems of lack of reservation price and income effects in demand functions derived from Cobb-Douglas utility or quasilinear utility. Another advantage of this alternative is that it provides a closed-form general equilibrium in the case where some industries are monopoly while others are imperfectly competitive.

Suggested Citation

  • Xiangkang Yin, 2000. "A tractable alternative to Cobb-Douglas utility for imperfect competition," Working Papers 2000.10, School of Economics, La Trobe University.
    • Handle: RePEc:ltr:wpaper:2000.10
    as

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    File URL: http://www.latrobe.edu.au/__data/assets/pdf_file/0006/130866/2000.10.pdf
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    References listed on IDEAS

    as
    1. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
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    Citations

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    Cited by:

    1. Christina M. L. Kelton & Robert P. Rebelein, 2007. "A General‐Equilibrium Analysis of Public Policy for Pharmaceutical Prices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(2), pages 285-318, April.
    2. Kris De Jaegher, 2008. "Benchmark Two‐Good Utility Functions," Manchester School, University of Manchester, vol. 76(1), pages 44-65, January.
    3. Clemens Fuest & Martin Kolmar, 2013. "Endogenous free riding and the decentralized user-fee financing of spillover goods in a n-region economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(2), pages 169-191, April.

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    More about this item

    Keywords

    Utility Function; Reservation Price; Income Effect; Monopoly; Oligopoly EDIRC Provider-Institution: RePEc:edi:smlatau;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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