Economic distributions, primitive distributions, and demand recovery in monopolistic competition

• 成果类型: Article
• 署名作者: Anderson, Simon P.; de Palma, Andre
• 署名单位: University of Virginia; CY Cergy Paris Universite
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2024.105823
• 发表日期: 2024
• 关键词: Primitive and economic distributions; monopoly; monopolistic competition; Pass-through and demand recovery; Mark-up; Price and profit dispersion

摘要

We link fundamental technological and taste distributions to endogenous economic distributions of prices and firm size (output, profit) generated under monopolistic competition with heterogeneous productivities as per recent Trade and Industrial Organization models. We derive full equivalence properties for monopoly mark-ups, demand shape, marginal revenue, and profits to match distributions of cost, price, output, and profit under monopolistic competition. Demand and one distribution determine the rest. We provide constructive proofs to recover demand and all distributions from just two (e.g., price and cost distributions uncover demand form), and derive restrictions on distribution pairs. Finally, we extend to analyze mark-up distributions.