Doubling Back on Double Marginalization
| Autor: | Laurent Linnemer |
|---|---|
| Přispěvatelé: | Centre de Recherche en Économie et Statistique (CREST), Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] (ENSAI)-École polytechnique (X)-École Nationale de la Statistique et de l'Administration Économique (ENSAE Paris)-Centre National de la Recherche Scientifique (CNRS) |
| Jazyk: | angličtina |
| Rok vydání: | 2022 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics History L13 Cournot Polymers and Plastics Strategy and Management B210 [SHS.ECO]Humanities and Social Sciences/Economics and Finance Industrial and Manufacturing Engineering Successive monopolies Management of Technology and Innovation L120 L420 Business and International Management K210 JEL codes: B160 Complements |
| Popis: | "Double marginalization" and "Elimination of Double marginalization" are catch-phrases commonly used in the IO literature. In this note, I trace back the origin of the idea to Chapter IX, on complementary goods monopolies, of Cournot (1838). Through the years Cournot's contribution remained a reference but ended being viewed as a special case of the bilateral monopoly model. Yet, it is worth wondering why the most cited paper on this issue is nowadays Spengler (1950) which contains only an informal treatment of the question. In addition to retracing the origin of the idea, I emphasize the elegant proof of Cournot for the simultaneous game and extend it to the sequential game. I also show that prices are usually higher in the sequential game but that they could be lower if demand is very convex. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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