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A Theory of Monopolistic Competition with Horizontally Heterogeneous Consumers

Kokovin, Sergej G. - 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 (2003). In addition to price setting, each firm also...

Persistent link: https://www.econbiz.de/10012841747

A Theory of Monopolistic Competition with Horizontally Heterogeneous Consumers

Kokovin, Sergej G.; Ozhegova, Alina; Sharapudinov, Shamil; … - 2023

Our novel approach to modeling monopolistic competition with heterogeneous firms and consumers involves spatial product differentiation. Space can be interpreted either as a geographical space or as a space of characteristics of a differentiated good. In addition to price setting, each firm also...

Persistent link: https://www.econbiz.de/10014261027

The Variation of Gravity within Countries (or 15 Reasons Why Gravity Should Be Estimated with Domestic Trade Flows)

Yotov, Yoto - 2021

foundations and clear gains from theory-consistent policy analysis, there are still gaps between gravity theory and empirics. This … paper focuses on domestic trade flows, and I argue that there are significant benefits from adhering to theory by estimating … survey of the literature reveals the need for further theory contributions and new data developments, and points to …

Persistent link: https://www.econbiz.de/10013228864

Gravity Without Apology : The Science of Elasticities, Distance, and Trade

Carrère, Céline - 2020

Gravity as both fact and theory is one of the great success stories of recent research on international trade, and has … general-equilibrium system. Next, we point out some anomalies with the theory: mounting evidence against constant trade …

Persistent link: https://www.econbiz.de/10012839359

Monopolistic Competition, Optimum Product Diversity, and International Trade - the Role of Factor Endowment and Factor Intensities

Marjit, Sugata; Mandal, Biswajit - 2021

In this paper we revisit the influential theory of monopolistic competition and optimum product variety as developed by …

Persistent link: https://www.econbiz.de/10013215667

Timing of technology adoption and product market competition

Milliou, Chrysovalantou; Petrakis, Emmanuel - 2009

This paper examines how product market competition affects firms' timing of adopting a new technology as well as …

Persistent link: https://www.econbiz.de/10010265992

Optimal Income Taxation Under Monopolistic Competition

Tarasov, Alexander; Zubrickas, Robertas - 2021

This paper is concerned with cross-dependencies between endogenous market structure and tax policy. We extend the Mirrlees (1971) model of income taxation with a monopolistic competition framework with general additively separable consumer preferences. We show that price and variety distortions...

Persistent link: https://www.econbiz.de/10013211731

On Equilibrium in Monopolistic Competition with Endogenous Labor

Kushnir, Alexey - 2020

We consider a model of monopolistic competition with several heterogeneous sectors and endogenous labor supply. For low (high) values of the labor supply elasticity, we show that there is always a unique equilibrium. For medium values of the labor supply elasticity, the set of equilibria (if...

Persistent link: https://www.econbiz.de/10012830992

On the Effects of Income Heterogeneity in Monopolistically Competitive Markets

Kichko, Sergey; Picard, Pierre M. - 2023

This paper studies the market and welfare effects of income heterogeneity in monopolistically competitive product markets in the context of nonhomothetic preferences. In a closed economy, where richer individuals’ expenditures are less sensitive to price change compared to poorer ones’, a...

Persistent link: https://www.econbiz.de/10014264149

Asymmetric Information and Differentiated Durable Goods Monopoly : Intra-Period Versus Intertemporal Price Discrimination

Laussel, Didier; Long, Ngo Van; Resende, Joana - 2021

A durable good monopolist faces a continuum of heterogeneous customers who make purchase decisions by comparing present and expected price-quality offers. The monopolist designs a sequence of price-quality menus to segment the market. We consider the Markov Perfect Equilibrium (MPE) of a game...

Persistent link: https://www.econbiz.de/10013212257