Multiproduct firms and market structure: an explorative application to the product life cycle

Paul Allanson, Catia Montagna

    Research output: Contribution to journalArticlepeer-review

    37 Citations (Scopus)

    Abstract

    The paper extends the standard Dixit–Stiglitz model of imperfect competition to allow for multiproduct firms, fully endogenising market structure by determining both the number of varieties per firm and the number of firms in the industry. The model is used to explore the proposition that shakeout in some industries may result in a shift from a fragmented market structure with many firms each offering a small range of products to a more concentrated equilibrium with fewer large firms each offering many products.
    Original languageEnglish
    Pages (from-to)587-597
    JournalInternational Journal of Industrial Organization
    Volume23
    Issue number7-8
    Early online date1 Jun 2005
    DOIs
    Publication statusPublished - Sep 2005

    Keywords

    • Imperfect competition
    • Multiproduct firms
    • Shakeout

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