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Chamberlin without differentiation: Soft-capacity constrained price competition with free entry

Marie-Laure Cabon-Dhersin () and Nicolas Drouhin ()
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Marie-Laure Cabon-Dhersin: LERN - Laboratoire d'Economie Rouen Normandie - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université
Nicolas Drouhin: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, UNICAEN UFR SEGGAT - Université de Caen Normandie - UFR de Sciences Économiques, Gestion, Géographie et Aménagement des Territoires - UNICAEN - Université de Caen Normandie - NU - Normandie Université

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Abstract: We show that the long-term properties of price and cost in Chamberlin's (1933) monopolistic competition model can be reproduced with a soft-capacity constrained price competition oligopoly model for a homogeneous good with free entry.

Keywords: price competition; soft-capacity constraint; free entry; U-shaped cost function; monopolistic competition; Chamberlin (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-com, nep-ind and nep-reg
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-03378500
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Published in International Journal of Economic Theory, Wiley, In press, ⟨10.1111/ijet.12339⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-03378500

DOI: 10.1111/ijet.12339

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