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Monopoly profit lower than oligopoly due to risk aversion
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dc.contributor.author | Jin, Jim Yongtao | |
dc.contributor.author | Kobayashi, Shinji | |
dc.date.accessioned | 2024-07-11T15:30:02Z | |
dc.date.available | 2024-07-11T15:30:02Z | |
dc.date.issued | 2023-06-30 | |
dc.identifier | 286023345 | |
dc.identifier | 20a10f4a-45ed-4852-b9e4-7497c84e5d34 | |
dc.identifier.citation | Jin , J Y & Kobayashi , S 2023 , ' Monopoly profit lower than oligopoly due to risk aversion ' , Economics Bulletin , vol. 43 , no. 2 , pp. 1010-1015 . < https://www.accessecon.com/pubs/EB/default.aspx?topic=Abstract&PaperID=EB-22-00497 > | en |
dc.identifier.issn | 1545-2921 | |
dc.identifier.uri | https://hdl.handle.net/10023/30152 | |
dc.description.abstract | The industry profit is usually maximized under monopoly and falls with the number of firms in a Cournot oligopoly. However, demand uncertainty and risk aversion reduce firms' outputs, thus raising oligopoly profits and reducing monopoly one. Given a liner demand and costs and a mean-variance utility, we obtain the necessary and sufficient condition for a monopoly's profit and utility to be lower than an oligopoly. We also find such a condition for collusion to yield a lower profit. Finally, we provide a sufficient condition for a monopoly profit to be lower than an oligopoly given a general non-linear demand function. | |
dc.format.extent | 6 | |
dc.format.extent | 159933 | |
dc.language.iso | eng | |
dc.relation.ispartof | Economics Bulletin | en |
dc.subject | Monopoly | en |
dc.subject | Oligopoly | en |
dc.subject | Risk aversion | en |
dc.subject | Demand uncertainty | en |
dc.subject | HD61 Risk Management | en |
dc.subject | T-NDAS | en |
dc.subject | MCP | en |
dc.subject.lcc | HD61 | en |
dc.title | Monopoly profit lower than oligopoly due to risk aversion | en |
dc.type | Journal article | en |
dc.contributor.institution | University of St Andrews. Economics (Business School) | en |
dc.description.status | Peer reviewed | en |
dc.identifier.url | https://www.accessecon.com/pubs/EB/default.aspx?topic=Abstract&PaperID=EB-22-00497 | en |
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