SFB 303 Discussion Paper No. A - 295

Author: Benassy, Jean-Pascal
Title: Monopolistic Competition
Abstract: The theory of monopolistic competition (and more generally all theories which endogenize price making without an auctioneer) poses important and difficult conceptual problems. Our purpose in this paper is to review a number of them. Of course, given the gigantic size of the literature on the subject, such a review can only be partial. As in the original monopolistic competition contribution we shall mostly concentrate on models with a generally large number of price setters, and indicate in the conclusion a number of alternative presentations.
The paper is organized as follows: Section 2 briefly reviews early developments in imperfect competition prior to Chamberlin (1933).
Section 3 introduces a basic model and studies problems of existence of an equilibrium. Section 4 discusses the issue of competitiveness of monopolistic competition. Section 5 introduces endogenous product differentiation. Section 6 considers general equilibrium representations of monopolistic competition Section 7 presents macroeconomic applications. Subsections at the end of each section indicate a list of further readings..
Creation-Date: May 1990
Unfortunately this paper is not available online. Please contact us to order a hardcopy.

SFB 303 Homepage

12.10.1999, Webmaster