Input–output linkages and optimal product diversity

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 158
Issue: C
Pages: 58-61

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

We derive a simple necessary and sufficient condition on preferences for the market outcome to be socially optimal under monopolistic competition with input–output (IO) linkages. Preferences that satisfy this condition are typically non-CES and display pro-competitive effects, although they converge to the CES when IO linkages become negligibly weak. We show that the equilibrium with pro-competitive effects may deliver both excess and insufficient entry of firms in equilibrium.

Technical Details

RePEc Handle
repec:eee:ecolet:v:158:y:2017:i:c:p:58-61
Journal Field
General
Author Count
1
Added to Database
2026-01-25