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Product Diversity in a Vertical Distribution Channel under Monopolistic Competition

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  • Bykadorov Igor

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Abstract

In Russia the chain-stores gained a considerable market power. Our model combines a Dixit-Stiglitz industry with a monopolistic retailer. The questions addressed are: Does the retailer always deteriorate welfare, prices and variety of goods? Which market structure is worse: Nash or Stackelberg behavior? What should be the public policy in this area?

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Bibliographic Info

Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number 10/03e.

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Date of creation: 06 Nov 2010
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Handle: RePEc:eer:wpalle:10/03e

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