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New Keynesian models of price setting under monopolistic competition involve two kinds of inefficiency: the price level … asymmetric. Implications for the welfare cost of fluctuations also differ from the standard monopolistic competition case …
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New Keynesian models of price setting under monopolistic competition involve two kinds of inefficiency: the price level … asymmetric. Implications for the welfare cost of fluctuations also differ from the standard monopolistic competition case …
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A standard macroeconomic model based on monopolistic competition (Dixit-Stiglitz) does not account for the strategic … behaviors of oligopolistic firms. In this study, we construct a tractable Hotelling duopoly model with price stickiness to … price stickiness. (2) The real effect of monetary policy under duopolistic competition is larger than that in a Dixit …
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