Hello everyone,
I'm looking for any literature on multiplant oligopoly. The usual models are
for (single plant) oligopoly, or for cartels (multiplant monopolist facing
the entire demand curve), but I am interested in firms that have multiple
plant and compete strategically. My first approach was to treat the
multiplant firm as a "cartel" that would have to compete with two or three
other strategic players who would also be able to influence market price
through the demand curve. The problem is that, for the multiplant firm under
scrutiny, as the firm-level MR is equated to plant-specific MC, the
resulting system of FOCs are degenerate.
Thank you,
Manny
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