Monopolistic Competition when Income Matters.

We analyse monopolistic competition when consumers have an indirect utility that is additively separable. This leads to markups depending on income (both in the short and long run) but not on the market size, which generates pricing to market, incomplete pass-through and pure gains from variety for...

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Publicado en:Economic Journal Vol. 127; no. 603; pp. 1217 - 1244
Autores principales: Bertoletti, Paolo, Etro, Federico
Formato: Artículo
Publicado: Oxford University Press / USA Aug2017
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Aug2017
      vid: 127
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      pub: Oxford University Press / USA
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        atl: Monopolistic Competition when Income Matters.
      aug:
        au:
          Bertoletti, Paolo
          Etro, Federico
        affil:
          University of Pavia
          Ca’ Foscari University of Venice
      su:
        Business cycles
        Macroeconomics
        Economic equilibrium
        Heterogeneity
        Consumer preferences
      sug:
        subj:
          Business cycles
          Macroeconomics
          Economic equilibrium
          Heterogeneity
          Consumer preferences
      ab: We analyse monopolistic competition when consumers have an indirect utility that is additively separable. This leads to markups depending on income (both in the short and long run) but not on the market size, which generates pricing to market, incomplete pass-through and pure gains from variety for countries that open up to trade. Firms' heterogeneity à la Melitz implies a Darwinian effect of consumers' spending on business creation and a Linderian effect on (endogenous) quality provision. We discuss extensions with an outside good and heterogenous agents, and offer simple and tractable specifications (linear or log-linear) of the demand functions.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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