The Inconsistencies in Monopolistic Competition: A Reply.
Product differentiation, which is used to confront firms with negatively sloped demand curves, and free entry basically are inconsistent assumptions. The most plausible source of product differentiation is to be found in the laws of trademark, copyright, and patent. The laws clearly are barriers to...
| Publicado en: | Journal of Political Economy Vol. 80; no. 3; pp. 592 - 598 |
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| Formato: | Artículo |
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University of Chicago Press
May/Jun72 Part 1
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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=5052301&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 5052301 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00223808 JPE jtl: Journal of Political Economy issn: 00223808 maglogo: N pubinfo: dt: May/Jun72 Part 1 vid: 80 iid: 3 pid: 415 pub: University of Chicago Press artinfo: ui: 5052301 10.1086/259908 ppf: 592 ppct: 6 formats: tig: atl: The Inconsistencies in Monopolistic Competition: A Reply. aug: au: Demsetz, Harold affil: University of Chicago. su: Monopolistic competition Demand function Product differentiation Trademarks Copyright New product development sug: subj: Monopolistic competition Demand function Product differentiation Trademarks Copyright New product development ab: Product differentiation, which is used to confront firms with negatively sloped demand curves, and free entry basically are inconsistent assumptions. The most plausible source of product differentiation is to be found in the laws of trademark, copyright, and patent. The laws clearly are barriers to imitative entry, they may be socially justified by the incentive that they give to new product production or by the reduction in information cost that they help to bring about, benefits which should, of course, be taken account of in judging the overall efficiency of markets in which products are differentiated. Nonetheless, these barriers provide neither more nor less than the prerequisites for simple monopoly. In the presence of such barriers it is difficult to apply or interpret the assumption of free entry. If a firm produces a profitable brand, "entry" need not eliminate profits because there is not free entry into the production of that brand. Product differentiation undermines the logic of using "free entry" to deduce the familiar zero profit Chamberlin equilibrium. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1972 holdings: @attributes: islocal: N |
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