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

  • Markku Lammi


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).


Marginal Cost Domestic Market Price Elasticity Foreign Firm Profit Maximization 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  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

There are no affiliations available

Personalised recommendations