Loloei, Mehrnaz

[ 1 ] - The Cartel-Fringe Equilibrium with Sluggish Demand

The demand for some products, such as energy, does not instantaneously respond to price changes. In fact, sluggishness of the demand is an important characteristic of energy and oil markets. This study examines the effect of demand sluggishness on the price and output of a fossil fuel industry in which a cartel and a fringe firm supply in the market. The cartel has larger reserves and less cost...