Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 15/2010: Leader, Or Just Dominant? The Dominant-Firm Model Revisited

Nils-Henrik M von der Fehr ()
Additional contact information
Nils-Henrik M von der Fehr: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

Abstract: I revisit the dominant-firm model and discuss its implicit assumption of a sequential move structure. I argue that a simultaneous move structure is often more reasonable and derive an alternative formulation of the model based on this approach.

Keywords: dominant…firm; monopoly with fringe; sequential moves

JEL-codes: D42; L12

24 pages, January 3, 2011

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