The aim of this paper is to study the welfare e§ects of consumer cooperatives in mixed oligopoly markets. We show that under decreasing returns to scale and su¢ ciently high market competition these Örms can contribute more to social welfare when acting on behalf of all consumers rather than only one representative consumer. This is because, by coordinating the preferences of consumers, these fiirms reduce their excessive market output, helping the market to come closer to the first-best. In all other cases we show that such consumersícoordination is not required to improve welfare
Welfare Enhancing Coordination in Consumer Cooperatives under Mixed Oligopoly / Marini, Marco; P., Polidori; D., Teobaldelli; Zevi, Alberto Maximo. - In: QUADERNI DI ECONOMIA, MATEMATICA E STATISTICA. - ISSN 1594-7645. - ELETTRONICO. - 2013/03:WP-EMS(2013), pp. 1-10.
Welfare Enhancing Coordination in Consumer Cooperatives under Mixed Oligopoly
MARINI, MARCO;ZEVI, Alberto Maximo
2013
Abstract
The aim of this paper is to study the welfare e§ects of consumer cooperatives in mixed oligopoly markets. We show that under decreasing returns to scale and su¢ ciently high market competition these Örms can contribute more to social welfare when acting on behalf of all consumers rather than only one representative consumer. This is because, by coordinating the preferences of consumers, these fiirms reduce their excessive market output, helping the market to come closer to the first-best. In all other cases we show that such consumersícoordination is not required to improve welfareI documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
