Autori
Ottaviano, Gianmarco I. P.
Thisse, Jacques-Francois

Titolo
Monopolistic competition, multiproduct firms and optimum product diversity
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1999 - Fascicolo: 31 - Pagina iniziale: 1 - Pagina finale: 29

This paper tackles thè issue of optimum produci diversity in an imperfectly competitive market with small or large firms. First, it develops a quadratic utility model of monopolistic competition with horizontal produci differentiation which avoids some of thè mairi pitfalls of thè S-D-S approach. Second, it extends thè model to thè case of multiproduct firms showing how product diversity is affected with respect to monopolistic competition. In particular, it is shown that monopolistic competition with single-product firms is thè limiting case of oligopolistic competition with multiproduct firms when either varieties gets more and more differentiated or when thè entry cost goes further and further down.



Testo completo: http://www.iue.it/ECO/WP-Texts/ECO99-31.pdf

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