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Title: Technological gap and heterogeneous oligopoly
Authors: Huang, Weihong
Zhang, Yang
Keywords: Technological Gap
Heterogeneous Oligopoly
DRNTU::Social sciences::Economic development
Issue Date: 2017
Source: Huang, W., & Zhang, Y. (2018). Technological gap and heterogeneous oligopoly. The Quarterly Review of Economics and Finance, 67, 1-7. doi:10.1016/j.qref.2017.02.003
Series/Report no.: The Quarterly Review of Economics and Finance
Abstract: This paper explores the effect of technological gap on output, profits, market concentration, and social welfare in quantity setting oligopoly with firms of unequal sizes, holding different conjectures, operating with non-identical costs, and producing homogenous products. Assuming firms with relatively advanced technology adopt sophisticated Cournot strategy while the remaining with backward technology behave as price takers, we find that an increase in technological gap between two types of firms may paradoxically lead to higher profits for not only the advanced but also the backward. Moreover, wider technological distance could lead to lower market concentration and be welfare enhancing.
ISSN: 1062-9769
DOI: 10.1016/j.qref.2017.02.003
Rights: © 2017 Board of Trustees of the University of Illinoi. All rights reserved. This paper was published by Elsevier Inc. in The Quarterly Review of Economics and Finance and is made available with permission of Board of Trustees of the University of Illinoi.
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:HSS Journal Articles

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