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.
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container_title Bulletin of economic research
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creator La Manna, Manfredi M. A.
description 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.
doi_str_mv 10.1111/j.1467-8586.1987.tb00249.x
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title A NOTE ON QUALITY, MARKET STRUCTURE AND THE IMPORTANCE OF THE 'INTEGER CONSTRAINT'
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