On Monopolistic Competition and Optimal Product Diversity: a Comment on Cost Structure and Workers' Rents

Pierre M. Picard () and Eric Toulemonde

Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) from Université de Lausanne, Faculté des HEC, DEEP

Abstract: In the Dixit-Stiglitz model of monopolistic competition, entry of firms is socially too small. Other authors have shown that excess entry is also a possibility with other preferences for diversity. We show that the cost structure and workers's rents can also explain excess entry.

Keywords: monopolistic competition; product diversity (search for similar items in EconPapers)
JEL-codes: D43 J5 L13 L16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-ind
Date: 2005-02
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Related works:
Working Paper: On Monopolistic Competition and Optimal Product Diversity: A Comment on Cost Structure and Workers' Rents (2005)
Working Paper: On monopolistic competition and optimal product diversity: a comment on cost structure and workersÕrents (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:lau:crdeep:05.02

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