On Monopolistic Competition and Optimal Product Diversity: a Comment on Cost Structure and Workers' Rents

In the Dixit-Stiglitz model of monopolistic competition, entry of firms is socially too small. Other authors have shown that excess entry is also a possibility with other preferences for diversity. We show that the cost structure and workers's rents can also explain excess entry.

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Year of publication:	2005-02
Authors:	Picard, Pierre M. ; Toulemonde, Eric
Institutions:	Départment d'économétrie et d'économie politique (DEEP), Faculté des Hautes Études Commerciales (HEC)
Subject:	monopolistic competition \| product diversity

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Extent:	application/pdf
Series:	Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP).
Type of publication:	Book / Working Paper
Language:	English
Notes:	10 pages
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining ; L13 - Oligopoly and Other Imperfect Markets ; L16 - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure; Industrial Price Indices
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005518860