کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
7384112 1480572 2017 21 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Price-cost margins and firm size under monopolistic competition: The case of IES preferences
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Price-cost margins and firm size under monopolistic competition: The case of IES preferences
چکیده انگلیسی
We introduce a class of “increasing elasticity of substitution” preferences in a monopolistic competition setting à la Dixit and Stiglitz (1977). Contrary to the standard view, we find that a market which is widening, as a result of, for example, international trade, increases price-cost margins and reduces firm sizes. However, even if prices are higher (with constant marginal costs), consumers benefit from the market expansion because of higher product diversity (the free-entry equilibrium has a sub-optimal number of varieties). Our results might contribute to explain the puzzle posed by the movements of markups following globalisation. They could also help explaining the cyclical behaviour of prices.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Research in Economics - Volume 71, Issue 4, December 2017, Pages 653-662
نویسندگان
, , ,