Product diversity in a vertical distribution channel under monopolistic competition

Bykadorov, Igor; Kokovin, Sergey; Zhelobodko, Evgeny

doi:10.1134/s0005117914080141

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Cited by 10 publications

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“…The mass (the number) of producers is quite large (cf. [4,5]). We study two types of retailer behavior: with and without the condition of free entry (cf.…”

Section: Introductionmentioning

confidence: 99%

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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“…The mass (the number) of producers is quite large (cf. [4,5]). We study two types of retailer behavior: with and without the condition of free entry (cf.…”

Section: Introductionmentioning

confidence: 99%