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image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao zbMATH Openarrow_drop_down
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Article
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The Review of Economic Studies
Article . 1994 . Peer-reviewed
Data sources: Crossref
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Monopolistic Competition with Endogenous Specialization

Monopolistic competition with endogenous specialization
Authors: Weitzman, Martin L.;

Monopolistic Competition with Endogenous Specialization

Abstract

In the familiar spatial model of monopolistic competition on the circle, a product is identified by a single locational characteristic representing its brand or variety. The ability of a variety to compete with other varieties a given distance away (its "specialization" as quantified by transportation losses or how rapidly the "melting iceberg" melts) is exogenously given in the standard model. Here, specialization is a choice variable selected by the firm. A monopolistically competitive general equilibrium is derived, where the degree of specialization is endogenously determined along with other variables. Implications are noted. The central contribution is to show that the effect of endogenizing specialization is to make the Hotelling-Lancaster-Chamberlin model of monopolistic competition isomorphic to the analytically much more tractable Dixit-Stiglitz-Ethier formulation, without sacrificing the appealing concept of product "distance".

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Keywords

Auctions, bargaining, bidding and selling, and other market models, General equilibrium theory

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
21
Average
Top 10%
Top 10%
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