Monopolistic or Imperfect Competition?

Abstract

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Stability in price competition revisited

“…11 Moreover, the result is the same when there are no fixed costs and then we have constant returns to scale. Thus, our remark is in accordance with Chamberlin (1933Chamberlin ( , 1937, who pointed out, in contrast to Kaldor (1935), that what marks the contrast between monopolistic competition and perfect competition is the shape of demand curve and not the shape of the cost curve.…”

“…Actually, the following price competition game highlights a way of overcoming the Bertrand paradox that differs from those that have already been considered in the literature. Furthermore, the same game allows us to illustrate a situation where arbitrarily small firms have market power as it happens in monopolistic competition situationsà la Chamberlin (1933Chamberlin ( , 1937. Let θ = (θ 1 , .…”

International Trade, Entrepreneurship, and Monopolistic Competition: German Hidden Champions and Global Markets

“…Diversity matters in global markets. As expected, Chamberlin challenged the leading neoclassical economists by claiming that most of the economic situations are composites of both competition and monopoly, and that, wherever this is the case, a false view is given by neglecting either one of the two forces and regarding the situation as made up entirely of the other (Chamberlin, 1937(Chamberlin, , 1965. In a monopolistic competitive industry, there are relatively many products that are close substitutes not perfect substitutes.…”

“…Chamberlin (1933) and Robinson (1933) are regarded as the parents of the modern study of imperfect competition. Chamberlin (1933Chamberlin ( , 1937Chamberlin ( , 1948Chamberlin ( , 1951Chamberlin ( , 1957Chamberlin ( , 1965 provided the building block for Schumpeterian analysis of market dynamics by his theory of monopolistic competition (Brue & Grant, 2008). Their collaboration contributed a lot to the modern economic thinking.…”

Monopolistic Competition and Product Diversity: Review and Extension

“…A long-run equilibrium is established when any new entrant will not be able to earn a positive profit and no existing firms will earn a negative profit. Chamberlin (1937Chamberlin ( , 1950 later added a number of clarifications on monopolistic competition: 1. A new entry may not flatten a close competitor's demand curve, although it will shift the demand curve down.…”