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On Monopolistic Competition and Optimal Product Diversity: a Comment on Cost Structure and Workers' Rents

Pierre Picard and Eric Toulemonde

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

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.

Keywords: monopolistic competition; product diversity (search for similar items in EconPapers)
JEL-codes: D43 J5 L13 L16 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2005-02
New Economics Papers: this item is included in nep-com and nep-ind
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Related works:
Working Paper: On monopolistic competition and optimal product diversity: a comment on cost structure and workers' rents (2005) Downloads
Working Paper: On Monopolistic Competition and Optimal Product Diversity: A Comment on Cost Structure and Workers' Rents (2005) Downloads
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