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Monopolistic Competition

  • Luis Corchón
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 442)

Abstract

General features of Monopolistically Competitive markets. The model of a representative consumer: Are average costs decreasing in the optimum? (Proposition 4.1). The effect on social welfare of an increase in the output or the number of firms in equilibrium (Propositions 4.2–3). A model with a representative consumer and the Large Group assumption: The relationship between optimal and equilibrium qualities (Proposition 4.4) and output (Proposition 4.5). The horizontal differentiation model: The model of the circular city (Salop). Existence of an equilibrium (Proposition 4.6). The convergence of Monopolistic Competition to Perfect Competition in large economies (Proposition 4.7). Appendix: Existence of optimal and equilibrium allocations (Propositions 4.8–9).

Keywords

Equilibrium Price Profit Maximization Equilibrium Output Representative Consumer Welfare Maximization 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1996

Authors and Affiliations

  • Luis Corchón
    • 1
  1. 1.Dept. Fundamentos del Análisis Económico and Instituto Valenciano de Investigaciones EconómicasUniversity of AlicanteAlicanteSpain

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