Liu, Lin; Wang, X. Henry - In: Economics Bulletin 30 (2010) 3, pp. 1935-1941
Two results are shown about the free-entry equilibrium in a Cournot market with asymmetric firms and imperfectly substituting goods. First, only one technology will survive in the production of each good. Second, some good(s) may not be produced. Specifically, we show that in a two-good model...