The Dynamics of Oligopoly Behavior: A Study of the US Cigarette Industry, 1955–90 |
| |
| Authors: | Donald J. Smythe |
| |
| Affiliation: | Department of Economics, College of Business Administration , University of Texas at Arlington , Box 19479, Arlington, TX, 76019, USA |
| |
| Abstract: | This paper uses the comparative statics method of testing for a monopoly equilibrium to track the competitiveness of the US cigarette industry between 1955 and 1990. The degree of competition ranged from somewhat less than a Coumot–Nash equilibrium would imply to somewhat more. Although the industry's behavior was highly autocorrelated, there were periodic reversions to behavior that was much more competitive than the trend |
| |
| Keywords: | Oligopoly Cournot Competitiveness JEL classifications: LI 3, L66 |
|
|
