Optimal Choice of Product Scope for Multiproduct Firms under Monopolistic Competition
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In this paper we develop a monopolistic competition model where firms exercise their market power across multiple products. Even with CES preferences, markups are endogenous. Firms choose their optimal product scope by balancing the net profits from a new variety against the costs of "cannibalizing"
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美国国家经济研究局创建时间：
2007-12-01
