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Soft-Capacity constrained price competition with entry and a minimum firm size: Chamberlin without differentiation

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Abstract

We consider a model of price competition in a homogeneous good, with soft-capacity constraints, in the special case of a Sone-Geary production function that implies a minimum firm size and leads to a U-shaped average cost function. We study free entry and obtain a Chamberlin-like result: zero profit and a positive markup at equilibrium.
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Dates and versions

hal-02909801 , version 1 (31-07-2020)

Identifiers

  • HAL Id : hal-02909801 , version 1

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Marie-Laure Cabon-Dhersin, Nicolas Drouhin. Soft-Capacity constrained price competition with entry and a minimum firm size: Chamberlin without differentiation. 2020. ⟨hal-02909801⟩
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