On the other hand, evolving technology also creates an increase in the need for paper that can withstand shipping and handling. As a result, the successful manufacturer must be both diversified and specialized.
Price Competition under Multinomial Logit Demand Functions with Random Coefficients In this paper, we postulate a general class of price competition models with Mixed Multinomial Logit demand functions under affine cost functions. We first characterize the equilibrium behavior of this class of models in the case where each product in the market is sold by a separate, independent firm and customers share a common income level.
We identify a simple and very broadly satisfied condition under which a Nash equilibrium exists while the set of Nash equilibria coincides with the solutions of the system of First Order Condition equations, a property of essential importance to empirical studies.
We show that under a somewhat stronger, but still broadly satisfied version of the above condition, a unique equilibrium exists. We complete the picture, establishing the existence of a Nash equilibrium, indeed a unique Nash equilibrium, for markets with an arbitrary degree of concentration; under sufficiently tight price bounds.
We then discuss two extensions of our model: A discussion of the multi product case is included in the appendix. The paper concludes with a discussion of implications for structural estimation methods.GP Cellulose is one of the world's premier producers of market pulp used primarily in the manufacture of paper products.
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this year. Pulp & Paper The U.S. pulp and paper industry is a leading contributor to our Nation’s economy. The sector manufactures over $ billion in products annually, contributing nearly 4% of manufacturing GDP.