Intra-firm Branch Competition for a Monopolist |
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Authors: | Wenli Cheng,& Yew-Kwang Ng |
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Affiliation: | New Zealand Treasury,;Monash University |
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Abstract: | This paper studies the effect of intra-firm branch competition in a monopoly setting. It demonstrates that intra-firm branch competition has a significant impact on the firm's market decisions, and consequently on the market outcome. The paper has identified the sufficient conditions under which a branch-competitive monopoly is superior to a pure monopoly from the consumer's viewpoint in that the former supplies more quantity and higher quality at the same price. |
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