Chamberlin without differentiation: Soft capacity constrained price competition with free entry

We show that the long‐term properties of price and cost in Chamberlin's monopolistic competition model can be reproduced with a soft capacity constrained price competition oligopoly model for a homogeneous good with free entry.

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Bibliographic Details
Published in:IDEAS Working Paper Series from RePEc 2023-03, Vol.19 (1), p.118-126
Main Authors: Cabon‐Dhersin, Marie‐Laure, Drouhin, Nicolas
Format: Article
Language:English
Subjects:
Chamberlin
Differentiation
Economics and Finance
free entry
Humanities and Social Sciences
Monopolistic competition
Oligopoly
price competition
soft capacity constraint
U‐shaped cost function
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Description
Summary:We show that the long‐term properties of price and cost in Chamberlin's monopolistic competition model can be reproduced with a soft capacity constrained price competition oligopoly model for a homogeneous good with free entry.
ISSN:1742-7355
1742-7363
DOI:10.1111/ijet.12339