On monopolistic competition and optimal product diversity: a comment on cost structure and workers' rents

Pierre Picard and Eric Toulemonde

No 2005016, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

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.

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 Workers' Rents (2005)
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