Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Product differentiation, the volume of trade and profits under Cournot and Bertrand duopoly

Collie, David ORCID: https://orcid.org/0000-0002-3132-648X and Le, Vo Phuong Mai 2011. Product differentiation, the volume of trade and profits under Cournot and Bertrand duopoly. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

[thumbnail of e2011_26.pdf]
Preview
PDF - Published Version
Download (460kB) | Preview

Abstract

This paper analyses how product differentiation affects the volume of trade under duopoly using Shubik-Levitan demand functions rather than the Bowley demand functions used by Bernhofen (2001). The Shubik-Levitan demand functions have the advantage that an increase in product differentiation does not increase the size of the market as happens with the Bowley demand functions. It is shown that the volume of trade in terms of quantities is decreasing in the degree of product differentiation when the trade cost is relatively low, but increasing in the degree of product differentiation when the trade cost is relatively high.

Item Type: Monograph (Working Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HB Economic Theory
Publisher: Cardiff University
Date of First Compliant Deposit: 30 March 2016
Last Modified: 28 Oct 2022 10:20
URI: https://orca.cardiff.ac.uk/id/eprint/77920

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics