Oligopolistic competition and the optimal provision of products
Article Abstract:
The question of equilibrium versus optimal product diversity is considered with respect to consumer preference satisfaction within the framework of two recent concepts in oligopoly theory. Specifically, a consumer behavior model set in an oligopoly market with price competition and free entry is investigated. The results, which are determined from the longconcavity of consumer taste density, shows that equilibrium leads to 'excessive product variety,' high prices and low production.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1995
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Revisiting the Sen poverty index
Article Abstract:
Econometrician A.K. Sen developed the Sen poverty index based on two axioms which state that overall poverty will increase if the number of poor persons decreases and whenever a pure transfer is made from a poor person to one with a higher income. Although his formula is acceptable, it cannot avoid both requirements stated in the axioms. Consequently, a revised version of the Sen poverty index, which avoids the pitfalls of the first formula, was developed.
Publication Name: Econometrica
Subject: Mathematics
ISSN: 0012-9682
Year: 1995
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