Anmerkungen:
In: Applied Economics Letters, Vol. 16, 2009
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 14, 2008 erstellt
Beschreibung:
We examine equilibrium responses of a Cournot oligopoly to two typical types of nonparallel demand increases. Results based on a linear demand curve show that in terms of profits, increases in demand that result in a more elastic demand curve are beneficial to every firm, with large firms benefiting disproportionately. In sharp contrast, only certain small firms benefit from demand increases that result in a more inelastic demand. Our results have implications in marketing and government policy making