Kokovin, Sergej G.; Sharapudinov, Shamil; Tarasov, Alexander - 2020
Our novel approach to modeling monopolistic competition with heterogeneous consumers involves a space of … characteristics of a differentiated good (consumers' ideal points), alike Hotelling (1929). Firms have heterogeneous costs à la Melitz … populated niches, and the unequal gains from trade across different consumers. …