Monopolistic competition with infinite product variety networks

Vincent Boitier ()
Additional contact information
Vincent Boitier: Le Mans University

Economics Bulletin, 2025, vol. 45, issue 1, 300 - 313

Abstract: In this article, I develop a new monopolistic competition model where the product variety space is a network defined as a "graphon". I determine and fully characterize the free-entry equilibrium of such a new setting. I obtain two major results. First, I find that denser networks generate less entries, lower aggregate quantities and lower welfare. Second, compared to the standard monopolistic competition model without network structure, the new setting generates more entries, higher aggregate quantities and higher welfare.

Keywords: monopolistic competition; free entry; networks; graphon (search for similar items in EconPapers)
JEL-codes: D4 L1 (search for similar items in EconPapers)
Date: 2025-03-30
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I1-P28.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-23-00174

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().