Abstract
The main purpose of the present paper is to show that the equilibrium price in an oligopolistic market with cooperative pricing but noncooperative production as a rule approaches neither the monopoly price (when there are few firms) nor the competitive price (when there are many firms). Instead it is equal to that price which maximizes collective sales revenues if the industry's demand curve is inelastic, while it is “almost” competitive if demand is elastic.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have