Monopolistic Competition and Optimum Product Diversity: Reply.
Authors of the article say that economist John Pettengill's comment on their paper "Monopolistic Competition and Optimum Product Diversity" leads on to interesting issues, even though the substantive points he raises are invalid. Pettengill tests whether there is an excessive number of firms in a mo...
| Publicado en: | American Economic Review Vol. 69; no. 5; pp. 961 - 964 |
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| Autores principales: | , |
| Formato: | Artículo |
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American Economic Association
Dec79
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4499069&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4499069 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: Dec79 vid: 69 iid: 5 pid: 22 pub: American Economic Association artinfo: ui: 4499069 ppf: 961 ppct: 3 formats: tig: atl: Monopolistic Competition and Optimum Product Diversity: Reply. aug: au: Dixit, Avinash K. Stiglitz, Joseph E. affil: Professor of Economics, University of Warwick Professor of Economics, Princeton University. su: Monopolistic competition Diversification in industry Competition Welfare economics Demand function Elasticity (Economics) Consumers Economic demand sug: subj: Monopolistic competition Diversification in industry Competition Welfare economics Demand function Elasticity (Economics) Consumers Economic demand ab: Authors of the article say that economist John Pettengill's comment on their paper "Monopolistic Competition and Optimum Product Diversity" leads on to interesting issues, even though the substantive points he raises are invalid. Pettengill tests whether there is an excessive number of firms in a monopolistically competitive equilibrium by a device of considerable expository merit. He removes one firm, and redistributes the resources thus released equally over the remaining firms in the sector, to see if welfare can be improved. Pettengill concludes by expressing his view that the authors' framework is inappropriate for the problem. According to the authors, his first point in this connection, that their approach must assume that each consumer consumes a small proportion of each product on the market, is false. Pettengill's preferred approach is the product characteristics model popularized by economist Kelvin Lancaster. For some purposes, particularly that of providing an intuitive feel for the kind of commodities that will be discriminated against in a market, that approach is extremely attractive. However, it suffers from the disadvantage that the derived demand functions are complex, and do not yield results in terms of parameters like the elasticity of demand that most economists have found intuitively helpful. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1979 holdings: @attributes: islocal: N |
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