Technological gap and heterogeneous oligopoly
Weihong Huang1; Yang Zhang2
Source PublicationQuarterly Review of Economics and Finance

This paper explores the effect of technological gap on output, profits, market concentration, and social welfare in quantity setting oligopoly with firms of unequal sizes, holding different conjectures, operating with non-identical costs, and producing homogenous products. Assuming firms with relatively advanced technology adopt sophisticated Cournot strategy while the remaining with backward technology behave as price takers, we find that an increase in technological gap between two types of firms may paradoxically lead to higher profits for not only the advanced but also the backward. Moreover, wider technological distance could lead to lower market concentration and be welfare enhancing.

KeywordTechnological Gap Heterogeneous Oligopoly Market Concentration Social Welfare
URLView the original
Indexed By其他
WOS Research AreaBusiness & Economics
WOS SubjectBusiness, Finance ; Economics
WOS IDWOS:000424989900001
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Document TypeJournal article
CollectionUniversity of Macau
Corresponding AuthorYang Zhang
Affiliation1.School of Humanities and Social Sciences, Nanyang Technological University, Singapore
2.Faculty of Business Administration, University of Macau, Macao
Corresponding Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Weihong Huang,Yang Zhang. Technological gap and heterogeneous oligopoly[J]. Quarterly Review of Economics and Finance,2018,67:1-7.
APA Weihong Huang,&Yang Zhang.(2018).Technological gap and heterogeneous oligopoly.Quarterly Review of Economics and Finance,67,1-7.
MLA Weihong Huang,et al."Technological gap and heterogeneous oligopoly".Quarterly Review of Economics and Finance 67(2018):1-7.
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