An Imperpect Competition Model in an Industry with Differentiated Domestic and Foreign Products

  • Markku Lammi
Chapter

Abstract

The purpose of this paper is to build a simple model of the demand for domestically produced and imported commodities and their prices in an industry with imperfect competition, symmetric firms and differentiated domestic and foreign products. The model should also be such that it could be parameterized and estimated. No preassumptions are made regarding the mode of competition, and the conjectural variations elasticity is allowed to vary over time. This paper relies mostly on Venables (1985) and Ilmakunnas (1985).

Keywords

Marginal Cost Domestic Market Price Elasticity Foreign Firm Profit Maximization 
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References

  1. Appelbaum, E. (1982): The Estimation of the Degree of Oligopoly Power, Journal of Econometrics, vol. 19, no. 2/3, August.Google Scholar
  2. Ilmakunnas, P. (1985): Identification and Estimation of the Degree of Oligopoly Power in Industries facing Domestic and Import Competition, in Schwalbach (ed.): Industry Structure and Performance, Sigma, Berlin.Google Scholar
  3. Venables, A. (1985): Trade and Trade Policy with Imperfect Competition: the Case of Identical Products and Free Entry, Journal of International Economics 19.Google Scholar

Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Markku Lammi

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