Product Diversity in a Vertical Distribution Channel under Monopolistic Competition

Igor Bykadorov

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: In Russia the chain-stores gained a considerable market power. Our model combines a Dixit-Stiglitz industry with a monopolistic retailer. The questions addressed are: Does the retailer always deteriorate welfare, prices and variety of goods? Which market structure is worse: Nash or Stackelberg behavior? What should be the public policy in this area?

JEL-codes: D43 L11 L22 M37 (search for similar items in EconPapers)
Date: 2010-11-06
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