Welfare, competition, specialization and growth

Daria Onori

Research in Economics, 2012, vol. 66, issue 4, 355-370

Abstract: In this paper we consider a model of horizontal differentiation with a quite general production function and derive the closed form solutions for the level of the variables in the decentralized economy and in the social planner case. This enables us to analyze how consumers’ welfare varies in terms of the degree of competition and the degree of returns to specialization. We find that welfare is increasing in the degree of returns to specialization both in the market economy and in the centralized economy and the decentralized economy's welfare is a bell-shaped function of the degree of competition.

Keywords: Closed form solutions; Welfare; Competition; Returns to specialization (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Welfare, Competition, Specialization and Growth (2011)
Working Paper: Welfare, Competition, Specialization and Growth (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:66:y:2012:i:4:p:355-370

DOI: 10.1016/j.rie.2012.07.002

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