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Monopolistic Competition Without Apology

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  • Jacques-Francois Thisse

    ()

  • Philip Ushchev

    () (National Research University Higher School of Economics)

Abstract

We provide a selective survey of what has been accomplished under the heading of monopolistic competition in industrial organization and other economic elds. Among other things, we argue that monopolistic competition is a market structure in its own right, which encompasses a much broader set-up than the celebrated constant elasticity of substitution (CES) model. Although oligopolistic and monopolistic competition compete for adherents within the economics profession, we show that this dichotomy is, to a large extend, unwarranted.

Suggested Citation

  • Jacques-Francois Thisse & Philip Ushchev, 2016. "Monopolistic Competition Without Apology," HSE Working papers WP BRP 141/EC/2016, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:141/ec/2016
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:reecon:v:71:y:2017:i:4:p:740-758 is not listed on IDEAS
    2. Barbara Annicchiarico & Enrico Marvasi, 2018. "Protection for Sale with Price Interactions and Incomplete Pass-Through," Working Papers LuissLab 18141, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    3. Andrea Ariu & Florian Mayneris & Mathieu Parenti, 2018. "One way to the top : How services boost the demand for goods," Working Paper Research 340, National Bank of Belgium.
    4. Barbara Annicchiarico & Enrico Marvasi, 2018. "Protection for Sale with Price Interactions and Incomplete Pass-Through," CEIS Research Paper 435, Tor Vergata University, CEIS, revised 08 Jun 2018.
    5. Matsuyama, Kiminori, 2017. "Geographical Advantage: Home Market Effect in a Multi-Region World," CEPR Discussion Papers 12352, C.E.P.R. Discussion Papers.
    6. Matsuyama, Kiminori & Ushchev, Philip, 2017. "Beyond CES: Three Alternative Classes of Flexible Homothetic Demand Systems," CEPR Discussion Papers 12210, C.E.P.R. Discussion Papers.
    7. Kenji Fujiwara, 2018. "The Effects of Entry under the Coexistence of Oligopolistic and Monopolistic Competition," Discussion Paper Series 174, School of Economics, Kwansei Gakuin University, revised Feb 2018.
    8. repec:cje:issued:v:50:y:2017:i:5:p:1414-1444 is not listed on IDEAS
    9. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1414-1444, December.

    More about this item

    Keywords

    monopolistic competition; oligopoly; product dierentiation; the negligibility hypothesis;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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