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Industry profits and market size under bilateral oligopoly

Naylor, Robin (2001) Industry profits and market size under bilateral oligopoly. Working Paper. CRENoS.


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We show that, contrary to the key result of the standard Cournot-Nash oligopoly model, industry profits can increase with the number of firms if input prices are not exogenous but are determined by bargaining in bilateral oligopoly. The relationship between industry profits and market size is shown to depend on the relative bargaining power of the upstream and downstream agents.

Item Type:Technical Report / Working Paper / Project Report (Working Paper)
Institution:Universita' degli Studi di Cagliari
Divisions:Centri > CRENoS Centro Ricerche Economiche Nord Sud
Subjects:Area 13 - Scienze economiche e statistiche > SECS-P/01 Economia politica
Uncontrolled Keywords:Bilateral oligopoly, Wage bargaining, Market size, Profits
ID Code:300
Deposited On:12 Nov 2008 10:48

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