Reflecting on Market Size and Entry under Oligopoly
In a homogeneous product market with n firms we explore the following. How do the equilibriumconfigurations change with increase in market size and with entry of additional firms? Regarding the effects of increase in market size, we prove some counterintuitive results. On the effects of entry, we reaffirm the existing results in the literature and reinterpret them. In all cases we provide illustrative examples.
KeywordsDemand Curve Market Size Rightward Shift Marginal Revenue Strategic Substitute
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