We study monopolistic competition equilibria with free entry and social planner solutions under symmetric Generalized Additively Separable preferences (that encompass known cases such as additive, homothetic, translog and other preferences). This setting can jointly produce competition and selection effects of entry, incomplete pass-through of cost changes and pricing to market. We discuss the inefficiencies of the market equilibrium under Gorman-Pollak preferences and show its optimality under implicit CES preferences. We propose a new specification of generalized translated power preferences and discuss applications to trade and macroeconomics.

Bertoletti, P., Etro, F. (2021). Monopolistic Competition with Generalized Additively Separable Preferences. OXFORD ECONOMIC PAPERS, 73(2 (April 2021)), 927-952 [10.1093/oep/gpaa016].

Monopolistic Competition with Generalized Additively Separable Preferences

Bertoletti, P
;
2021

Abstract

We study monopolistic competition equilibria with free entry and social planner solutions under symmetric Generalized Additively Separable preferences (that encompass known cases such as additive, homothetic, translog and other preferences). This setting can jointly produce competition and selection effects of entry, incomplete pass-through of cost changes and pricing to market. We discuss the inefficiencies of the market equilibrium under Gorman-Pollak preferences and show its optimality under implicit CES preferences. We propose a new specification of generalized translated power preferences and discuss applications to trade and macroeconomics.
Articolo in rivista - Articolo scientifico
Monopolistic competition, GAS preferences, Heterogeneous firms
English
23-giu-2020
2021
73
2 (April 2021)
927
952
none
Bertoletti, P., Etro, F. (2021). Monopolistic Competition with Generalized Additively Separable Preferences. OXFORD ECONOMIC PAPERS, 73(2 (April 2021)), 927-952 [10.1093/oep/gpaa016].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/264606
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