DP11449 Monopolistic competition without apology
|Author(s):||Jacques-François Thisse, Philip Ushchev|
|Publication Date:||August 2016|
|Keyword(s):||monopolistic competition, oligopoly, product differentiation, the negligibility hypothesis|
|JEL(s):||D43, L11, L13|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=11449|
We provide a selective survey of what has been accomplished under the heading of monopolistic competition in industrial organization and other economic fields. Among other things, we argue that monopolistic competition is a market structure in its own right, which encompasses a much broader set-up than the celebrated constant elasticity of substitution (CES) model. Although oligopolistic and monopolistic competition compete for adherents within the economics profession, we show that this dichotomy is, to a large extend, unwarranted.