The efficiency of monopolistically competitive equilibria in large economies: Commodity differentiation with Gross substitutes
type: Item
instance of: scholarly article
title: The efficiency of monopolistically competitive equilibria in large economies: Commodity differentiation with Gross substitutes
zbMATH Open document ID: 0616.90008
DOI: 10.1016/0022-0531(87)90025-1
author: Larry E. Jones
published in: Journal of Economic Theory
publication date: 1987-01-01T00:00:00Z
review text: A general model of commodity differentiation is developed using two different approaches to the theory of demand. It is shown that a local version of Bertrand's argument holds under reasonable conditions. If all commodities are substitutes and sunk costs are small, there is never too little commodity differentiation relative to the optimum. Under the same conditions, monopolistically competitive equilibria are approximately perfectly competitive if the optimal collection of commodities is sufficiently rich.
Mathematics Subject Classification ID: 91B24
zbMATH DE Number: 3999618
zbMATH Keywords: commodity differentiation
zbMATH Keywords: monopolistically competitive equilibria
MaRDI profile type: Publication
full work available at URL: 0022-0531(87)90025-1
OpenAlex ID: W2047209214
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description: scientific article; zbMATH DE number 3999618