Nonparallel demand increases in an asymmetric Cournot oligopoly

Yuqing Zheng, Harry M. Kaiser

Research output: Contribution to journalArticlepeer-review


We examine equilibrium responses of a Cournot oligopoly to two typical types of nonparallel demand increases. The results based on a linear demand curve show that in terms of profits, increases in demand that result in a more elastic demand curve are beneficial to every firm, with large firms benefiting disproportionately. In sharp contrast, only certain small firms benefit from demand increases that result in a more inelastic demand. Our results have implications in marketing and government policy making.

Original languageEnglish
Pages (from-to)829-833
Number of pages5
JournalApplied Economics Letters
Issue number9
StatePublished - 2010

Bibliographical note

Copyright 2010 Elsevier B.V., All rights reserved.

ASJC Scopus subject areas

  • Economics and Econometrics


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