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

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  • Marie‐Laure Cabon‐Dhersin
  • Nicolas Drouhin

Abstract

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.

Suggested Citation

  • Marie‐Laure Cabon‐Dhersin & Nicolas Drouhin, 2023. "Chamberlin without differentiation: Soft capacity constrained price competition with free entry," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(1), pages 118-126, March.
    • Handle: RePEc:bla:ijethy:v:19:y:2023:i:1:p:118-126
    DOI: 10.1111/ijet.12339
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    References listed on IDEAS

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