Monopolistic Competition: Beyond the Constant Elasticity of Substitution
Monopolistic Competition: Beyond the Constant Elasticity of Substitution
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DOI：
10.3982/ecta9986
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发表时间：
2012-11-01
期刊：
影响因子：
6.1
通讯作者：
Thisse, Jacques-Francois
中科院分区：
文献类型：
--
作者：
Zhelobodko, Evgeny;Kokovin, Sergey;Thisse, Jacques-Francois
本文提出了一个具有附加偏好和可变边际成本的垄断竞争模型。使用的概念，相对的爱的品种，我们提供了一个完整的表征的自由进入均衡。当对多样性的相对热爱随着个人消费的增加而增加时，市场就会产生有利于竞争的效应。当它下降时，市场模仿反竞争行为。只有在替代弹性不变的情况下，所有的竞争效应才会消失。我们还表明，我们的结果适用于当经济涉及多个部门，企业是异质性的，和偏好的二次效用和translog。
We propose a model of monopolistic competition with additive preferences and variable marginal costs. Using the concept of relative love for variety, we provide a full characterization of the free-entry equilibrium. When the relative love for variety increases with individual consumption, the market generates pro-competitive effects. When it decreases, the market mimics anti-competitive behavior. The constant elasticity of substitution is the only case in which all competitive effects are washed out. We also show that our results hold true when the economy involves several sectors, firms are heterogeneous, and preferences are given by the quadratic utility and the translog.