Inducing efficiency in oligopolistic markets with increasing returns to scale

Inducing efficiency in oligopolistic markets with increasing returns to scale

We consider a Cournot Oligopoly market of firms possessing increasing returns to scale technologies (which may not be identical). It is shown that an external regulating agency can increase total social welfare without running a deficit by offering to subsidize one firm an amount which depends on the output level of that firm and the market price. The firms bid for this contract, the regulator ...

Efficiency in decentralized oligopolistic markets

The paper investigates how quantity competition operates in economies in which a network describes the set of feasible trades. A model is presented in which equilibrium dictates whether an individual buys, sells, or intermediates goods. The analysis first considers small economies, and provides suffi cient conditions for equilibrium existence, a characterization of prices and flows, and some ne...

Are There Increasing Returns to Scale in Marriage Markets?

The goal of an individual searching for a marriage partner is typically to form a long-term relationship. Marital search is a complicated and costly activity, where opportunities typically arrive over time at uncertain intervals, each party has to evaluate each other’s characteristics, and expectations play an important role. Given these features of marital search, a seminal paper by Mortensen ...

Are There Increasing Returns in Marriage Markets?

Most matching models of the marriage market assume increasing returns to scale, that is, they postulate that a larger pool of eligibles will lead to a higher marriage rate. Empirically, the difficulty in studying the cross-section relationship between the size of the marriage market and marriage behavior is that, in general, market size is endogenous. We address this issue in two ways. First, w...

Equity, Efficiency and Increasing Returns