Computing Welfare Losses from Data under Imperfect Competition with Heterogeneous Goods

@inproceedings{Corchn2008ComputingWL,
  title={Computing Welfare Losses from Data under Imperfect Competition with Heterogeneous Goods},
  author={Luis C. Corch{\'o}n and Galina Zudenkova},
  year={2008}
}
We study the percentage of welfare losses (PWL) yielded by imperfect competition under product differentiation. When demand is linear, if prices, outputs, costs and the number of firms can be observed, PWL is arbitrary in both Cournot and Bertrand equilibria. If in addition, the elasticity of demand (resp. cross elasticity of demand) is known, we can… CONTINUE READING