A NOTE ON QUALITY, MARKET STRUCTURE AND THE IMPORTANCE OF THE 'INTEGER CONSTRAINT'

A NOTE ON QUALITY, MARKET STRUCTURE AND THE IMPORTANCE OF THE 'INTEGER CONSTRAINT'

ABSTRACT Faced with the integer constraint brought about by quality‐related fixed costs, a socially‐managed industry is more flexible than a free‐entry oligopoly, for it can adjust the integer‐constrained number of firms either upwards or downwards. As a result, and contrary to conventional wisdom,...

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Veröffentlicht in:Bulletin of economic research 1987-10, Vol.39 (4), p.303-307
1. Verfasser: La Manna, Manfredi M. A.
Format: Artikel
Sprache:eng
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Zusammenfassung:ABSTRACT Faced with the integer constraint brought about by quality‐related fixed costs, a socially‐managed industry is more flexible than a free‐entry oligopoly, for it can adjust the integer‐constrained number of firms either upwards or downwards. As a result, and contrary to conventional wisdom, product quality may be identical under the two regimes.
ISSN:0307-3378
1467-8586
DOI:10.1111/j.1467-8586.1987.tb00249.x