Social Welfare under Oligopoly: Does the Strengthening of Competition in Production Increase Consumers' Well-Being?

Mathieu Parenti, Alexander V. Sidorov, Jacques-Francois Thisse

Результат исследования: Публикации в книгах, отчётах, сборниках, трудах конференцийстатья в сборнике материалов конференциинаучнаярецензирование

Аннотация

The paper studies the detailed comparison of the Social welfare (indirect utility) under three types of imperfect competition in a general equilibrium model: quantity oligopoly (Cournot), price oligopoly (Bertrand) and monopolistic competition (Chamberlin). The folk wisdom implies that an increasing toughness of competition in sequence Cournot-Bertrand-Chamberlin results in increasing of consumers' welfare (indirect utility). We show that this is not true in general. This is accomplished in a simple general equilibrium model where consumers are endowed with separable preferences. We find the sufficient condition in terms of the representative consumer preference providing the "intuitive" behavior of the indirect utility and show that this condition satisfy the classes of utility functions, which are commonly used in examples (e.g., CES, CARA and HARA). Moreover, we provide a series of numerical examples (and analytically verifiable conditions as well), which illustrate that violation of this condition may results in "counter-intuitive" behavior of indirect utility, when the weakest level of competition (Cournot) provides the highest amount of the consumer's welfare.

Язык оригиналаанглийский
Название основной публикацииCONTRIBUTIONS TO GAME THEORY AND MANAGEMENT, VOL X
РедакторыLA Petrosyan, NA Zenkevich
ИздательST PETERSBURG UNIV GRAD SCH MANAGEMENT
Страницы233-244
Число страниц12
ISBN (печатное издание)*****************
СостояниеОпубликовано - 2017
Событие10th International Conference on Game Theory and Management (GMT2016) - St Petersburg
Продолжительность: 7 июл 20169 июл 2016

Серия публикаций

НазваниеContributions to Game Theory and Management
ИздательST PETERSBURG UNIV GRAD SCH MANAGEMENT
Том10
ISSN (печатное издание)2310-2608

Конференция

Конференция10th International Conference on Game Theory and Management (GMT2016)
ГородSt Petersburg
Период07.07.201609.07.2016

Цитировать

Parenti, M., Sidorov, A. V., & Thisse, J-F. (2017). Social Welfare under Oligopoly: Does the Strengthening of Competition in Production Increase Consumers' Well-Being? В LA. Petrosyan, & NA. Zenkevich (Ред.), CONTRIBUTIONS TO GAME THEORY AND MANAGEMENT, VOL X (стр. 233-244). (Contributions to Game Theory and Management; Том 10). ST PETERSBURG UNIV GRAD SCH MANAGEMENT.