Preferences, entry, and market structure.

We provide a unified approach to imperfect (monopolistic, Bertrand, and Cournot) competition when preferences are symmetric over a finite but endogenous number of goods. Markups depend on the Morishima elasticity of substitution and on the number of varieties. The comparative statics of free-entry e...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 47; no. 4; pp. 792 - 822
Autores principales: Bertoletti, Paolo, Etro, Federico
Formato: Artículo
Publicado: Wiley-Blackwell Winter2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Preferences, entry, and market structure.
      aug:
        au:
          Bertoletti, Paolo
          Etro, Federico
        affil:
          University of Pavia
          University of Venice Ca' Foscari
      su:
        Market entry
        Industrial productivity
        Economic competition
        Elasticity (Economics)
        Market design & structure (Economics)
      sug:
        subj:
          Market entry
          Industrial productivity
          Economic competition
          Elasticity (Economics)
          Market design & structure (Economics)
      ab: We provide a unified approach to imperfect (monopolistic, Bertrand, and Cournot) competition when preferences are symmetric over a finite but endogenous number of goods. Markups depend on the Morishima elasticity of substitution and on the number of varieties. The comparative statics of free-entry equilibria is examined, establishing the conditions for markup neutrality with respect to income, market size, and productivity. We compare endogenous and optimal market structures for several non-CES examples. With a generalized linear direct utility, the markup can be constant and optimal under monopolistic competition, and nonmonotonic in the number of firms under Bertrand or Cournot competition.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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