A Note on Cournot Competition in Di昀ferentiated Oligopolies

摘要

In this paper, we study a Cournot competition where there are a group of firms producing a homogeneousrnproduct and another group producing a differentiated product. We find that, fixing the total number of firmsrnin the market, each firm’s profit is U-shaped and convex in the number of firms producing the same productrnwhen the degree of substitution is large, and each firm’s profit is U-shaped in the cross-price effect parameterrnwhen the number of firms producing the same product is large.