Monopolistic Competition Model with Retailing

Tilzo, Olga; Bykadorov, Igor

doi:10.1007/978-3-030-58657-7_24

Cited by 1 publication

(6 citation statements)

References 13 publications

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“…This paper continues the works [13,14]. More precisely, in [14], we compared different types of interaction; as a result, we considered the situation from the point of view of the manufacturer, retailer, consumers, and society as a whole.…”

Section: Introductionmentioning

confidence: 72%

“…We study the producer-retailer-consumers two-level interaction, monopolistic competition model. The model adopts several assumptions (see [13]) of monopolistic competition.…”

Section: Modelmentioning

confidence: 99%

“…Now let us formulate the retailer problem. Similarly to the producer problem (2.5) (see [13,14]), let d R be the retailer's marginal costs and F R be the retailer's fixed costs. Let p * (i, r(i), N, P ) be the optimal pricing policies, then the demand is q(i, r(i), N, P ) while the profile of mark-up is r = (r(i)) i∈[0,N ] .…”

Section: Modelmentioning

confidence: 99%

“…More precisely, in [14], we compared different types of interaction; as a result, we considered the situation from the point of view of the manufacturer, retailer, consumers, and society as a whole. In [13], we considered the case of retailer leadership; we studied two situations of retailer behavior: with free entry conditions and without free entry conditions; it turned out that social welfare increases when the retailer is stimulated by subsidies; a similar situation arises when considering consumer surplus.…”

Section: Introductionmentioning

confidence: 99%

“…In the present paper, we supplement the results of [13,14] by introducing an entrance fee for the producer.…”

Section: Introductionmentioning

confidence: 99%

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Monopolistic Competition Model With Entrance Fee

Tilzo

2022

UMJ

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We study the monopolistic competition model with producer-retailer-consumers two-level interaction. The industry is organized according to the Dixit–Stiglitz model. The retailer is the only monopolist. A quadratic utility function represents consumer preferences. We consider the case of the retailer's leadership; namely, we study two types of behavior: with and without the free entry condition. Earlier, we obtained the result: to increase social welfare and/or consumer surplus, the government needs to subsidize (not tax!) retailers. In the presented paper, we develop these results for the situation when the producer imposes an entrance fee for retailers.

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Section: Introductionmentioning

confidence: 72%

“…We study the producer-retailer-consumers two-level interaction, monopolistic competition model. The model adopts several assumptions (see [13]) of monopolistic competition.…”

Section: Modelmentioning

confidence: 99%

Section: Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…In the present paper, we supplement the results of [13,14] by introducing an entrance fee for the producer.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations