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Monopolistic Competition

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Theories of Imperfectly Competitive Markets

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

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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).

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Authors and Affiliations

  1. Dept. Fundamentos del Análisis Económico and Instituto Valenciano de Investigaciones Económicas, University of Alicante, Ap. Correus 99, 03071, Alicante, Spain

    Prof. Luis Corchón

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  1. Prof. Luis Corchón
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© 1996 Springer-Verlag Berlin Heidelberg

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Corchón, L. (1996). Monopolistic Competition. In: Theories of Imperfectly Competitive Markets. Lecture Notes in Economics and Mathematical Systems, vol 442. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-22531-8_5

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  • DOI: https://doi.org/10.1007/978-3-662-22531-8_5

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-61553-8

  • Online ISBN: 978-3-662-22531-8

  • eBook Packages: Springer Book Archive

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