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  • 2005-2009  (1)
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    Electronic Resource
    Electronic Resource
    A MODEL OF MONOPOLISTIC COMPETITION WITH PERSONAL INCOME DISPERSION (2005)
    Oxford, UK : Blackwell Publishing Ltd.
    Metroeconomica 56 (2005), S. 0 
    Details
    ISSN: 1467-999X
    Source: Blackwell Publishing Journal Backfiles 1879-2005
    Topics: Economics
    Notes: We introduce non-homothetic preferences in the Dixit–Stiglitz model of monopolistic competition, and enquire about the effects of a change in income dispersion on the firms’ optimal decisions and market equilibrium. Income dispersion, modeled as a mean preserving spread, is shown to affect only the degree of product differentiation under the standard negligibility hypothesis on the firms’ decision making process, while it generates a positive co-movement of demand and demand elasticity, when this assumption is removed and the price index effect is taken into account.
    Type of Medium: Electronic Resource
    URL: http://dx.doi.org/10.1111/j.1467-999X.2005.00218.x
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