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Price Competition in Product Variety Networks
Games and Economic Behavior. 2018. Vol. 110. P. 226–247.
Ushchev P., Zenou Y.
We develop a product-differentiated model where the product space is a network defi ned
as a set of varieties (nodes) linked by their degrees of substitutability (edges). We also locate
consumers into this network, so that the location of each consumer (node) corresponds to her
"ideal" variety. We show that there exists a unique Bertrand-Nash equilibrium where prices are
determined by both the fi rms' sign-alternating Bonacich centralities and the average willingness
to pay across consumers. We also investigate how local product differentiation and the spatial
discount factor affect the equilibrium prices. We show that these effects non-trivially depend
on the network structure. In particular, we find that, in a star-shaped network, the central fi rm
does not always enjoy higher monopoly power than the peripheral firms.
Publication based on the results of:
Гайворонская Е. А., Терещенко Д. С., Прикладная эконометрика 2026 № 1(81) С. 93–116
This paper presents an empirical analysis of spatial competition among major retail chains in the grocery markets of Moscow and St. Petersburg. Using an ordered probit model and spatial data, the determinants of entry and exit decisions in local markets are examined. The results reveal the predominance of the motive to avoid cannibalization: the probability ...
Added: April 8, 2026
Smirnov A., AlterEconomics (ранее - Журнал экономической теории) 2024 Т. 21 № 2 С. 286–301
Interregional migration in Russia surpasses both intraregional and international migration in volume, playing a pivotal role in redistributing human capital across the country. To capture migration patterns between regions comprehensively, it is crucial to analyze all migration flows rather than just final migration indicators. This study integrates two research fields: network science, which examines various ...
Added: March 18, 2026
Springer, 2025.
This book contains best selected research papers presented at ICTCS 2024: Ninth International Conference on Information and Communication Technology for Competitive Strategies. The conference will be held in Jaipur, India during 19 – 21 December 2024. The book covers state-of-the-art as well as emerging topics pertaining to ICT and effective strategies for its implementation for ...
Added: September 8, 2025
Slepov F., Kokovin S. G., Economic Theory 2025
We revisit Krugman’s (J Int Econ 9(4):469–479, 1979.) classical trade model in its general form with several asymmetric countries and unspecified additive utility functions. We present the weakest known conditions on utilities sufficient for the existence of equilibrium. These conditions are also necessary under symmetric preferences. Using the same method for Bertoletti and Etro’s (Econ ...
Added: May 5, 2025
Slepov Fedor, Kokovin S. G., / Series WP BRP "Basic research program". 2023. No. 262/EC/2023.
This paper develops a modeling technique of “attainable profit” functions, applying it to two models of monopolistic competition. First, it revisits the Krugman's classical trade model in the most general form: several asymmetric countries and non-specified additive utility functions. We establish the weakest conditions on utilities, sufficient for the existence of equilibria. These conditions are ...
Added: December 19, 2023
Mukosey A., Semenov A., Tretiakov A., Journal of Parallel and Distributed Computing 2024 Vol. 183 Article 104765
Several approaches and techniques exist to resolve load balancing problem in general and torus topology networks. Graph methods are natural ways to perform balancing of routing paths. A routing balancing algorithm must operate within the constraints of the underlying network architecture that limits several parameters, such as the number of logical paths in the network. In this paper, we consider a ...
Added: November 25, 2023
Schieber T., Carpi L., Pardalos P. M. et al., Nature Communications 2023 Vol. 14 No. 1 Article 2217
Understanding diffusive processes in networks is a significant challenge in complexity science. Networks possess a diffusive potential that depends on their topological configuration, but diffusion also relies on the process and initial conditions. This article presents Diffusion Capacity, a concept that measures a node’s potential to diffuse information based on a distance distribution that considers ...
Added: April 26, 2023
Sergey Kokovin, Pavel Molchanov, Bykadorov I., Journal of International Economics 2022 Vol. 137 Article 103595
We study the canonical Krugman (1979) trade model with non-CES preferences that yield autarky at finite trade costs. We prove a non-monotone impact of gradual trade liberalization. At first, near autarky, emerging trade reduces world welfare, while at free trade it becomes large enough to be beneficial (Krugman's result). This non-monotonicity persists under heterogenous firms. ...
Added: January 23, 2023
Karamysheva M., Seregina E., Journal of International Money and Finance 2022 Vol. 127 Article 102696
The impact of prudential policies in open economies depends on their intrinsic efficacy and the spillovers from the close financial partners. Using a sample of advanced economies, we find that prudential policy interventions significantly reduce systemic risk in the financial systems with the impact amplified through a network of financial investment links. Using the Spatial ...
Added: July 15, 2022
Mikhaylova O., Dokuka S., Frontiers in Psychology 2022 Vol. 13 Article 848774
Added: March 16, 2022
Goryunov M., Sergey Kokovin, Tabuchi T., Economic Theory 2021 Vol. 74 No. 3 P. 793–832
Our novel approach enriches the general additive monopolistic competition model with a space of product characteristics: consumers’ “ideal varieties”. This paper bridges two traditions in modelling markets with horizontal product differentiation: the Hotelling’s (Econ J 39(153):41–57, 1929) “address economy” and Chamberlinian Dixit–Stiglitz monopolistic competition. Unlike Hotelling, our partially localised competition involves intersecting zones of service among producers. ...
Added: November 18, 2021
Kokovin S. G., Vasilev F., Ural Mathematical Journal 2021 Vol. 7 No. 1 P. 66–80
Unlike standard models of monopolistic screening (second-degree price discrimination), we consider a situation where consumers are heterogeneous not only vertically, in their willingness to pay, but also horizontally, in their tastes or "addresses'' a la Hotelling's Linear City. For such a screening game, a novel model is composed. We formulate the game as an optimization program, prove the existence of ...
Added: November 18, 2021
IEEE, 2021.
IEEE Comnetsat 2021 aims to address the current state of technology and the outcome of ongoing research in the area of Communications, Networks, and Satellite Systems, which covers theory, design, and application of computer and communication, networks, satellite systems as well as broadband photonic systems, data science, and artificial intelligence. ...
Added: October 7, 2021
Rozanova N. M., Общественные науки и современность 2021 № 1 С. 63–72
Patterns for competitive and monopoly behaviour, market power configurations and instruments of interfirm relationships are under radical transformation in a digital era. There arise new forms of monopolistic strategies that aim at establishing, strengthening and withstanding long-term market power in various industries. Analysis of Russian and foreign economic investigations that was done in the article ...
Added: March 20, 2021
Vasily M. Goncharenko, Alexander B. Shapoval, Lipagina L., , in: Proceedings of the Conference on Modeling and Analysis of Complex Systems and Processes 2020 (MACSPro 2020)Vol. 2795.: CEUR Workshop Proceedings, 2020. P. 108–116.
We consider a general equilibrium model in a multisector economy with 𝑛 high-tech sectors where singleproduct firms compete monopolistically producing a differentiated good. Homogeneous sector is characterized by perfect competition. Workers attempt to find a job in high-tech sectors because of higher wages. However, it is possible for them to remain unemployed. Wages of employees ...
Added: January 13, 2021
Pospelov I. G., Radionov S., Advances in Systems Science and Applications 2020 Vol. 20 No. 2 P. 119–130
We present a natural generalization of the Dixit-Stiglitz monopolistic competition model (DSM) — we assume that there is a continuum of industries, each of them described as in DSM, and each characterized with its own elasticity of substitution. Although firms in all industries share the same level of productivity and costs, exogenous technological progress leads ...
Added: December 8, 2020
Galvin P., Burton N., Singh P. et al., Technological Forecasting and Social Change 2020 Vol. 161 No. article 120253 P. 1–10
Strategy, structure and rivalry across an industry has an impact upon innovation outcomes at the industry level. However, when patterns of rivalry are altered through the presence of strategic networks (sets of firms that cooperate closely on the basis of their web of strategic alliances) it is not clear what impact this has upon product ...
Added: November 26, 2020
Matsuyama K., Ushchev P., / Series ISSN 0265-8003 "Centre for Economic Policy Research Discussion Paper Series". 2020. No. DP14991.
The Dixit-Stiglitz model of monopolistic competition with symmetric CES demand system with gross substitutes is widely used as a building block across many applied general equilibrium fields. Two of its remarkable features are the invariance of the markup rate and the optimality of the freeentry equilibrium. Of course, neither of these two features is robust. ...
Added: November 22, 2020
Matsuyama K., Ushchev P., / Series ISSN 0265-8003 "Centre for Economic Policy Research Discussion Paper Series". 2020. No. DP15475.
We propose and characterize parametric families of homothetic demand systems, which feature a constant pass-through rate that is common across otherwise heterogenous monopolistically competitive firms. These parametric families offer natural, flexible, and yet tractable extensions of CES. In the case of complete pass-through, the markup rate is constant, as in CES, yet it can be ...
Added: November 21, 2020
Behrens K., Murata Y., Mion G. et al., Quarterly Journal of Economics 2020 Vol. 135 No. 4 P. 2299–2360
Equilibria and optima generally differ in imperfectly competitive markets. Although this is well understood theoretically, it is unclear how large the welfare distortions are in the aggregate economy. Do they matter quantitatively? To answer this question, we develop a multisector monopolistic competition model with endogenous firm entry and selection, productivity, and markups. Using French and ...
Added: November 3, 2020
Davidova S., Sauer J., Gorton M., Post-Communist Economies 2019 Vol. 31 P. 200–217
Drawing on household, network and relative deprivation models of migration, this paper empirically tests the probability to migrate utilising data for agricultural households in Kosovo (circa 13,500 observations). We identify the determinants of the propensity to migrate and length of migration in the previous year, considering gender related differences. The results reveal the significance of ...
Added: October 26, 2020
Osharin A., Valery Verbus, Irina Bakunina et al., Journal of Economic Structures 2020 Vol. 9 P. 1–12
The paper develops a two-country monopolistic competition model of trade featuring country-specifc consumer tastes. The accounting for heterogeneity in tastes is achieved by assuming diferent elasticities of substitution in the CES utility function for diferent country consumers. The proposed framework extends the canonical Krugman’s approach by revealing new efects regarding markups response to consumer heterogeneity ...
Added: October 10, 2020