Preferences, entry, and market structure

• 成果类型: Article
• 署名作者: Bertoletti, Paolo; Etro, Federico
• 署名单位: University of Pavia; Universita Ca Foscari Venezia
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12155
• 发表日期: 2016
• 页码: 792-821
• 关键词: monopolistic competition; elasticity; substitution; variety; TRADE; size; differentiation; equilibria; price

摘要

We provide a unified approach to imperfect (monopolistic, Bertrand, and Cournot) competition when preferences are symmetric over a finite but endogenous number of goods. Markups depend on the Morishima elasticity of substitution and on the number of varieties. The comparative statics of free-entry equilibria is examined, establishing the conditions for markup neutrality with respect to income, market size, and productivity. We compare endogenous and optimal market structures for several non-CES examples. With a generalized linear direct utility, the markup can be constant and optimal under monopolistic competition, and nonmonotonic in the number of firms under Bertrand or Cournot competition.