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Любовь к качеству продукции в модели монополистической конкуренции с CES-функцией полезности потребителя
С. 271–279.
Verbus V. A., Kichko S., Osharin A.
We consider a model of monopolistic competition, which includes in addition to a love of variety,love for the product quality. We proposed utility function for consumers possessing the properties the love of variety and love for the product quality. States of equilibrium in the long and short term are considered.
In book
Кн. 1. , М.: Издательский дом НИУ ВШЭ, 2015.
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
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
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
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
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
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
A.Shapoval, V. M. Goncharenko, Journal of Economics 2020 Vol. 130 No. 2 P. 187–218
This paper offers a new theory that describes the influence of uncertainty on economic fundamentals. This theory posits that uncertainty can improve social welfare. We argue that in an economy, where spending of the customers for the differentiated good correlates with larger substitutability of its varieties, the equilibrium output decreases and the prices increase when uncertainty appears. Alternatively, if such ...
Added: March 2, 2020
Verbus V. A., Osharin A., Bakunina I. A., В кн.: Системное моделирование социально-экономических процессов: труды 41-ой международной научной школы-семинара, г. Нижний Новгород, 30 сентября – 4 октября 2018 г.: Воронеж: Истоки, 2018. С. 64–67.
A model of monopolistic competition for a closed economy, consisting of the traditional sector and the industrial production sector, which includes multi-product companies, is built. The consumption sector consists of heterogeneous consumers with a two-level Cobb-Douglas utility function and a generalized CES utility function built into it. The generalized CES utility function, unlike the standard ...
Added: February 25, 2020
Verbus V. A., Osharin A., Экономическая политика 2019 Т. 14 № 3 С. 152–175
The paper builds a two-sector monopolistic competition model featuring multi-product firms and heterogeneous consumers endowed with a Cobb–Douglas utility nesting a generalized CES function. In contrast to the standard CES, the generalized CES function includes both the love of variety and the love for product quality, which makes it possible to distinguish consumers differing in their ...
Added: October 24, 2019
Parenti M., Journal of International Economics 2018 Vol. 110 P. 103–118
This paper studies the impact of trade liberalization when large and small firms coexist in the same market.
I develop a model of imperfect competition where a few oligopolistic firms coexist with a monopolistically
competitive fringe. The former have a direct impact on the industry average price level, which depends on
the breadth of their product scope. Oligopolists ...
Added: October 24, 2018
Goncharenko V., Pokrovsky D. A., Shapoval S., / NRU Higher School of Economics. Series WP BRP "Economics/EC". 2018. No. 196.
In this paper, we introduсe a simple new theory on mixed сompetition between oligopolistiс firms and the competitive fringe, assuming a comparative advantage for big firms and free entry for small firms. Oligopolies are defined as conglomerates, each part of which benefits from joint operations through lower costs. Our theory implies that (i) industries with ...
Added: August 15, 2018
Kichko S., Spatial Economic Analysis 2018 Vol. 13 No. 4 P. 387–399
We develop an economic geography framework with positive trade costs in both manufacturing and traditional sectors, mobile skilled workers, and unequal shares of unskilled labour in regions. We show that partial agglomeration always features the home market effect (HME) regardless of whether regions trade only the manufacturing good or both. Moreover, spatial factor mobility is ...
Added: July 3, 2018
Kichko S., Behrens K., Ushchev P., / Series "CESifo working paper". 2018. No. WP6965.
We develop a general equilibrium model of monopolistic competition with a traded and a nontraded sector. Using a broad class of homothetic preferences—that generate variable markups, display a simple behavior of their elasticity of substitution, and nest the ces as a limiting case— we show that trade liberalization: (i) reduces domestic markups and increases imported ...
Added: April 26, 2018
Ushchev P., Zenou Y., Games and Economic Behavior 2018 Vol. 110 P. 226–247
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 ...
Added: April 19, 2018
Osharin A., Verbus V. A., Journal of Economics 2018 Vol. 125 No. 3 P. 211–237
The paper considers a two-sector two-country trade model of monopolistic competition featuring the heterogeneity of consumer preferences and incomes within and across countries. The incorporation of heterogeneity into a monopolistic competition setting is achieved by assuming a nested Cobb–Douglas and CES utility function exhibiting both country and sector-specific consumer tastes and expenditure shares on manufacturing ...
Added: March 29, 2018
Malykhin N. I., Ushchev P., / Series WP BRP "Basic research program". 2016. No. WP BRP 140/EC/2016.
We develop a simple partial-equilibrium model of endogenous city structure formation. No
production externalities are at work, the only two forces shaping the spatial configurations of
the city being love for variety (on the consumer side) and seeking for a better access to the market
(on the firm side). We show that, unlike in existing models of a ...
Added: January 22, 2018
Thisse J., Ushchev P., , in: Handbook of Game Theory and Industrial OrganizationVol. 1.: Edward Elgar Publishing, 2018. P. 93–136.
We provide a selective survey of what has been accomplished under the heading of monopolistic competition in industrial organization and other economic fields. Among other things, we argue that monopolistic competition is a market structure in its own right, which encompasses a much broader set-up than the celebrated constant elasticity of substitution (CES) model. Although ...
Added: January 18, 2018