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|
|Date of revision:|
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