Nocco, Antonella; Ottaviano, Gianmarco I. P.; Salto, Matteo - Centre for Economic Performance, LSE - 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,...