Vert-zonal Differentiation in Monopolistic Competition

Arbeitspapier

The pattern of trade observed from firm-product-country data calls for a new generation of models. To address the unexplained variation in the data, we propose a new model of monopolistic competition where varieties enter preferences non-symmetrically, capturing both horizontal and vertical differentiation in an unprecedented way. Together with a variable elasticity of substitution, competition effects, varying markups and prices across countries, this results in a tractable model whose predictions differ from existing ones. Using the population of Belgian exporters, our model succeeds in explaining the hitherto unexplained variation. The implications call for a re-thinking of earlier results and measurement practices.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: LICOS Discussion Paper ; No. 300

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Empirical Studies of Trade ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
• Thema: Heterogeneous firms - Horizontal differentiation - Vertical differentiation - Monopolistic competition - non symmetric varieties ; Produktdifferenzierung ; Konsumentenverhalten ; Monopolistischer Wettbewerb ; Industrieökonomik ; Belgien

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Di Comite, Francesco ; Thisse, Jean-François ; Vandenbussche, Hylke
• Ereignis: Veröffentlichung
• (wer): Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance
• (wo): Leuven
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/74925
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ