Duopoly Market Outperforms Monopoly, Defying Economic Intuition and Common Knowledge.
The article compares monopoly and duopoly models in a two-sided market with no product differences. They find that in some cases, duopoly prices are higher than monopoly prices, but total demand is higher in duopoly. Even when prices don't change, duopoly profits are lower than monopoly profits. The impact on total welfare is unclear with subsidies, but without them, total welfare is higher in duopoly. These results challenge common economic beliefs about competition in markets.