Multiproduct Technology and Market Structure

Abstract

A recent line of research has exposed some technological determinants of the structure of industries that produce more than one good. The analyses of both multiproduct perfect competition and natural monopoly require a generalized notion of average cost and, in addition, several newly identified technological characteristics pertinent only to joint production. This paper provides an overview of these new results, and suggests a unifying framework in which the theory can be further developed.

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