dc.contributor.author | GORYUNOV, Maxim | |
dc.contributor.author | KOKOVIN, Sergey | |
dc.contributor.author | TABUCHI, Takatoshi | |
dc.date.accessioned | 2018-04-06T10:49:01Z | |
dc.date.available | 2018-04-06T10:49:01Z | |
dc.date.issued | 2018 | |
dc.identifier.issn | 1830-7728 | |
dc.identifier.uri | https://hdl.handle.net/1814/53304 | |
dc.description.abstract | Our new approach enriches the general additive monopolistic competition model (AMCM) with a space of product characteristics: consumers' “ideal varieties''. Unlike Hotelling, such partially localized competition involves intersecting zones of service among (continuously distributed) producers. Then, the uniform equilibrium firms' density increases with a growing population, as in the case of the usual AMCM. However, now increasing/decreasing prices are determined by the increasing/decreasing elasticity of elementary utility (instead of demand elasticity in AMCM). A new characteristic – the firm's range of service – decreases. Such finer matching between buyers and sellers becomes a new source of welfare gain from a thicker market, unlike the variety benefit in AMCM. The free-entry competition remains socially excessive under some natural preferences. | en |
dc.format.mimetype | application/pdf | en |
dc.language.iso | en | en |
dc.relation.ispartofseries | EUI MWP | en |
dc.relation.ispartofseries | 2018/01 | en |
dc.rights | info:eu-repo/semantics/openAccess | en |
dc.subject | Monopolistic competition | en |
dc.subject | Spatial competition | en |
dc.subject | Optimal product diversity | en |
dc.subject | Gains from trade | en |
dc.subject | Finer | en |
dc.subject | Matching | en |
dc.subject | L11 | en |
dc.subject | L13 | en |
dc.title | Continuous spatial monopolistic competition : matching goods with consumers | en |
dc.type | Working Paper | en |