Nocco, Antonella; Ottaviano, Gianmarco; Salto, Matteo - C.E.P.R. Discussion Papers - 2013
After some decades of relative oblivion, the interest in the optimality properties of monopolistic competition has recently re-emerged due to the availability of an appropriate and parsimonious framework to deal with firm heterogeneity. Within this framework we show that non-separable utility,...