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Dixit Stiglitz (1977) - Monopolistic Competition And Optimum Product Diversity (view source)
Revision as of 19:14, 29 September 2020
, 19:14, 29 September 2020no edit summary
{{Article
|Has page=Dixit Stiglitz (1977) - Monopolistic Competition And Optimum Product Diversity
|Has bibtex key=
|Has article title=Monopolistic Competition And Optimum Product Diversity
|Has author=Dixit Stiglitz
|Has year=1977
|In journal=
|In volume=
|In number=
|Has pages=
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*This page is referenced in [[BPP Field Exam Papers]]
*Dixit, A. and J. Stiglitz (1977), "Monopolistic competition and optimum product diversity", American Economic Review 67, 297-308. [http://www.edegan.com/pdfs/Dixit%20Stiglitz%20(1977)%20-%20Monopolistic%20competition%20and%20optimum%20product%20diversity.pdf pdf] [http://www.edegan.com/repository/Dixit%20Stiglitz%20(1977)%20-%20Class%20Slides.pdf (Class Slides)]
@article{dixit1977monopolistic,
title={Monopolistic competition and optimum product diversity},
author={Dixit, A.K. and Stiglitz, J.E.},
journal={The American Economic Review},
volume={67},
number={3},
pages={297--308},
year={1977},
publisher={JSTOR}
}
<math>x_i = \left(\frac{1}{p_i}\right)^{\frac{1}{1-\rho}} \cdot \frac{1}{q^{1-\rho} y} \,</math>
where <math>y = (\sum_{i=1}^{n} x^\rho )^{\frac{1}{\rho}} \;</math> and <math>q = \left(\sum_{i=1}^{n}p_i^{-1}{\frac{1-\rho}{\rho}}\right)^{-\frac{1-\rho}{\rho}}\,</math>
===Market Behaviour===
:<math>\frac{dx_i}{dp_i} = -\frac{1}{1-\rho} (\frac{q}{p_i})^{\frac{1}{1-\rho}} \frac{y}{p_i}\,</math>
:<math>n^* = \left( \frac{c u_{x_0}}{\rho u_y} \right)^{\rho}{1-\rho}\,</math>
===A Planner's solution===
:<math>n^* = \frac{B}{\frac{f}{1-\rho} (1+\alpha)}\,</math>
:<math>n^p = \frac{B}{(\frac{\rho}{1-\rho}(1+\alpha) + 1) f}\,</math>
