Dixit Stiglitz (1977) - Monopolistic Competition And Optimum Product Diversity
Revision as of 00:01, 5 April 2010 by imported>Ed
Reference(s)
- Dixit, A. and J. Stiglitz (1977), "Monopolistic competition and optimum product diversity", American Economic Review 67, 297-308. pdf (Class Slides)
Abstract
The basic issue concerning production in welfare economics is whether a market solution will yield the socially optimum kinds and quantities of commodities. It is well known that problems can arise for three broad reasons: distributive justice; external effects; and scale economies. This paper is concerned with the last of these.
