Monopolistic Competition, Multiproduct Firms and Optimum Product Diversity

Gianmarco Ottaviano and Jacques Thisse

Economics Working Papers from European University Institute

Abstract: This paper tackles the issue of optimum product diversity in an impoerfeclty competitive market with small or large firms. First, it develops a quadratic utility model of monopolistic competition with horizontal product differentiation which avoids some of the main pitfalls of the S-D-S approach. Second, it extends the model to the case of multiproduct firms showing how product diversity is affected with respect to monopolistic competition.

Keywords: COMPETITION; MONOPOLIES; PRODUCTION (search for similar items in EconPapers)
JEL-codes: D40 L40 (search for similar items in EconPapers)
Pages: 29 pages
Date: 1999
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Citations: View citations in EconPapers (50)

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Related works:
Working Paper: Monopolistic competition, multiproduct firms and optimum product diversity (1999)
Working Paper: Monopolistic Competition, Multiproduct Firms and Optimum Product Diversity (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:eui:euiwps:eco99/31

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