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Product Diversity in a Vertical Distribution Channel under Monopolistic Competition

  • Bykadorov Igor

    ()

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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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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  1. Dixit, Avinash, 1983. "Vertical integration in a monopolistically competitive industry," International Journal of Industrial Organization, Elsevier, vol. 1(1), pages 63-78, March.
  2. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Post-Print halshs-00754863, HAL.
  3. 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.
  4. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  5. Mathewson, G F & Winter, R A, 1983. "Vertical Integration by Contractual Restraints in Spatial Markets," The Journal of Business, University of Chicago Press, vol. 56(4), pages 497-517, October.
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