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This is an entry produced for the Handbook of the History of Economic Analysis, edited by Gilbert Faccarello and Heinz D. Kurz. Cheltenham, UK and Northampton, MA, USA: Edward Elgar, forthcoming.
Persistent link: https://www.econbiz.de/10011260229
of a barrier to avoid Bertrand competition. We show that the notion of a barrier to entry has economic pertinence only if … monopolistic competition with welfare implications of a barrier to entry being positive as well as negative. Regulators thus need …
Persistent link: https://www.econbiz.de/10011260264
monopolistic competition works only when n is large; from the functions of the productions best when one applies linear production … function. Under increasing returns to scale monopolistic competition will lead to a greater degree of product differentiation …
Persistent link: https://www.econbiz.de/10009323928
include monopolistic competition with variable markups. We find the following results: (i) for sectors organized into lobbies …
Persistent link: https://www.econbiz.de/10011107780
In models of monopolistic competition with a single factor of production, imposition of tariff can lead (paradoxically …
Persistent link: https://www.econbiz.de/10011107959
This paper develops a model of small open economy, with a differentiated goods sector and voluntary provisioning of public good. It is shown that trade policy can alter the quantity of public good provided in the equilibrium. Interestingly, tariffs may fail to protect, leading to a Metzler...
Persistent link: https://www.econbiz.de/10011108357
demand or the competition gets tougher, his production costs grow and the possibility to differentiate prices is reduced …
Persistent link: https://www.econbiz.de/10011111243
This paper provides a DSGE model with firm entry. Simulations show that the model matches the synchronization of markups and entry observed in the data while at the same time reproducing empirically plausible moments for key macroeconomic variables. Sticky prices are essential for these results.
Persistent link: https://www.econbiz.de/10011113670
paper examines the role of market competition for this trend in corporate reorganization. We find that at intermediate … levels of competition the CEO of the corporation decides to have less power inside the firm and to delegate control to lower … equilibrium when competition is not too tough and not too weak. The model predicts merger waves or waves of outsourcing when …
Persistent link: https://www.econbiz.de/10005785925
This paper builds a two-country-two-sector trade model with a monopolistically competitive sector and non-homothetic preferences. It assumes the existence of two types of goods: necessities (which are homogeneous) and luxuries (which are differentiated) and heterogeneous labor. The implications...
Persistent link: https://www.econbiz.de/10005790261