Discussion paper

DP11449 Monopolistic competition without apology

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.


Thisse, J and P Ushchev (2016), ‘DP11449 Monopolistic competition without apology‘, CEPR Discussion Paper No. 11449. CEPR Press, Paris & London. https://cepr.org/publications/dp11449