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The inefficiencies related to endogenous product creation and variety under monopolistic competition are two-fold: one static--the misalignment between consumers and producers regarding the value of a new variety; and one dynamic--time variation in markups. Quantitatively, the welfare costs of...
Persistent link: https://www.econbiz.de/10012464264
This paper investigates how the tying of complementary products can be used to preserve and extend monopoly positions …. We first show how a firm that is a monopolist of a product in the current period can use tying to preserve its monopoly … monopoly position into a newly emerging market. The analysis focuses on the importance of entry costs and network externalities …
Persistent link: https://www.econbiz.de/10012471980
from trade under Bertrand and Cournot oligopoly. Firms differentiate their products to mitigate competition, but only if … levels of investment can raise Bertrand profit above Cournot profit and also above the monopoly profit at autarky when …
Persistent link: https://www.econbiz.de/10012457660
failure to observe homogeneous product Bertrand oligopoly, while homogeneous product Cournot oligopoly has significant …
Persistent link: https://www.econbiz.de/10012457700
marginal costs nonparametrically, allow for unobserved firm heterogeneity, and nest a variety of equilibrium oligopoly models …) intuition for empirically discriminating between alternative models of oligopoly competition …
Persistent link: https://www.econbiz.de/10012463009
We examine the interplay between market structure and the form that commodity taxation should take in a general equilibrium model in which firms produce differentiated products and so are able to exert market power. Our analysis takes account of two important recent developments that affect...
Persistent link: https://www.econbiz.de/10012469287
We study dynamic price competition between sellers offering differentiated products with limited capacity and a common sales deadline. In every period, firms simultaneously set prices, and a randomly arriving buyer decides whether to purchase a product or leave the market. Given remaining...
Persistent link: https://www.econbiz.de/10014635636
We document how demand shocks in export markets lead French multi-product exporters to re-allocate the mix of products sold in those destinations. In response to positive demand shocks, those French firms skew their export sales towards their best performing products; and also extend the range...
Persistent link: https://www.econbiz.de/10012456244
Motivated by the long-standing debate on the pros and cons of competitive devaluation, we propose a new perspective on how monetary and exchange rate policies can contribute to a country's international competitiveness. We refocus the analysis on the implications of monetary stabilization for a...
Persistent link: https://www.econbiz.de/10012479715
The monopolistic competition model in international trade offers three sources of gains from trade that do not arise in competitive models: expansion in product variety; a pro-competitive reduction in the markups charged by firms; and the self-selection of more efficient firms into exporting....
Persistent link: https://www.econbiz.de/10012458829