Eckel, Carsten (contributor); Neary, J. Peter (contributor) - 2006
)xj (i) +eY]. (1)
Here, pj (i) and xj (i) denote the price of good i and its quantity produced by �rm j, and Y = RN0 x … total output of each multi-product
�rm, X, is itself �nite. It may be helpful to think of the single-product �rms as …
Naturally, there is no cannibalization e�ect for single-product �rms, so equation (12) is independent of X.
By substituting (8 …