Abstract
In this paper, we extend the traditional evolutionary model of homogeneous product market by incorporating a particular abstraction of imperfect monopolistic competition borrowed from Dixit and Stiglitz. Specifically, we analyze a formal model of an industry in which a set of heterogeneous firms produce differentiated products; consumers have a preference for variety, and therefore firms enjoy an imperfect monopolistic position in the market. We explore the system dynamics, focusing on how selection processes operate depending on the monopolistic intensity of the market and the heterogeneity of firms.
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© 2009 Springer-Verlag Berlin Heidelberg
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Santos, J.I., Olmo, R.d., Pajares, J. (2009). Selection Processes in a Monopolistic Competition Market. In: Hernández, C., Posada, M., López-Paredes, A. (eds) Artificial Economics. Lecture Notes in Economics and Mathematical Systems, vol 631. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-02956-1_6
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DOI: https://doi.org/10.1007/978-3-642-02956-1_6
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