Optimum Product Diversity and the Incentives for Entry in Natural Oligopolies

S-Tier
Journal: Quarterly Journal of Economics
Year: 1987
Volume: 102
Issue: 3
Pages: 595-613

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper concerns the classification of biases in the set of produced varieties in a monopolistically competitive equilibrium in the natural oligopoly setting. That is, we analyze the relationship between the set of produced goods in equilibrium when fixed costs are small and the set of produced goods by a social planner when fixed costs equal zero. It is shown that if all of the goods are substitutes, there are never too few varieties, and there may be too many. Conversely, if the goods are all complementary, there are never too many, and there may be too few.

Technical Details

RePEc Handle
repec:oup:qjecon:v:102:y:1987:i:3:p:595-613.
Journal Field
General
Author Count
1
Added to Database
2026-01-25