Market Power Index of Firms in Differentiated Oligopoly
T.V.S. Ramamohan Rao
Firms operating in differentiated oligopoly derive market power in their interface with the consumers (and the implied elasticity of demand) and their interaction with rival firms (reflected in their market shares). A change in the concept of demand for the product of any one firm and the corresponding definition of the elasticity of demand are warranted. The present study develops the requisite concepts.