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Regular version of the site

Article

Product Diversity in a Vertical Distribution Channel under Monopolistic Competition

Automation and Remote Control. 2014. Vol. 75. No. 8. P. 1503-1524.
I.A.Bykadorov, S.G.Kokovin, E.V.Zhelobodko.

In Russia, chain stores have achieved considerable market power. In this work, we combine a Dixit–Stiglitz industry model with a monopolistic retailer in order to address the following questions: does the retailer always impair prices, variety of goods, and ultimately welfare? Which market structure is worse: Nash or Stackelberg? What should be the public policy in this area?