Working Paper Number
WP #04027, October 2004; Old working paper #12207
Welfare in a two-product Cournot oligopoly is shown to increase (decrease) with an increase in correlation between unit costs when the outputs complement (substitute) in demand. A more qualified correlation structure is required for the result to apply in a three-product Cournot oligopoly when products complement in demand.
Lapan, Harvey E. and Hennessy, David A., "Cost arrangement and welfare in a multi-product Cournot oligopoly" (2004). Economics Working Papers (2002–2016). 203.