Product Diversity in a Vertical Distribution Channel under Monopolistic Competition
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?
|Date of creation:||06 Nov 2010|
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- Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008.
"Economic Geography: The Integration of Regions and Nations,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
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- Martin K. Perry & Robert H. Groff, 1985. "Resale Price Maintenance and Forward Integration into a Monopolistically Competitive Industry," The Quarterly Journal of Economics, Oxford University Press, vol. 100(4), pages 1293-1311.
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