TITLE:
Monopolistic Product Line Competition with Ex Post Consumer Heterogeneity
AUTHORS:
Nikolaos Georgantzís, Aurora García-Gallego
KEYWORDS:
Consumer Heterogeneity; Product Diversity; Monopolistic Competition
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.2,
March
13,
2014
ABSTRACT: We model
monopolistic competition in product lines, assuming that consumer heterogeneity
is the result rather than the cause of product variety. Our results contradict
some well-known policy implications yielded by the standard monopolistic
competition framework.