Monopolistic Competition and General Purpose Products.
The development of "general purpose" products means that the needs of quite heterogeneous consumers can be sat isfied with the same homogenous product. The private and social incen tives to produce "general purpose" products are studied in this paper within the "circular-road-model" of monopolistic competition. Th e degree of general purposeness of a product is approximated by its p er unit distance transport costs. It is shown that there are strong f orces leading the market to supply products whose transport costs are excessively low. Copyright 1988 by The Review of Economic Studies Limited.
Year of publication: |
1988
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Authors: | von Ungern-Sternberg, Thomas |
Published in: |
Review of Economic Studies. - Wiley Blackwell, ISSN 0034-6527. - Vol. 55.1988, 2, p. 231-46
|
Publisher: |
Wiley Blackwell |
Saved in:
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