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Sugata Marjit, Suryaprakash Misra and Dyuti S Banerjee
''Technology improvement and market structure alteration''
( 2017, Vol. 37 No.2 )
In this paper we show that the increasing marginal cost assumption removes the infeasibility of market structure alteration that is present under the constant marginal cost assumption. Specifically, in an infinitely repeated game with increasing marginal cost, we show that technological improvement has the potential to switch the market structure from collusion to Cournot generating additional welfare gains.
Keywords: Infinitely Repeated Game, Market Structures, Technology.
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
Manuscript Received : Dec 26 2016 Manuscript Accepted : May 14 2017

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