COWAN, SIMON; YIN, XIANGKANG - In: Australian Economic Papers 47 (2008) 3, pp. 264-271
Duopolists selling differentiated products can generate less consumer surplus than a monopoly selling one of the products. In a Hotelling-type model where a monopoly supplies more than half of potential consumers, but not all, entry by a rival leads to a duopoly price that is higher than the...