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Questions tagged [monopolistic-competition]

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What is e-commerce's market structure?

What is e-commerce's market structure? From what angle should this be looked at? As Amazon is a part of many markets.
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Blanchard Kiyotaki model of monopolistic competition, derive aggregate price level

I have the following set of equations from a simplified version of the Blanchard Kiyotaki model: $$P_i=\frac{\gamma}{1-\gamma}\frac{M}{C}\Bigg(\frac{C}{m C_i}\Bigg)^{\frac{1}{\theta}} \tag{1}$$ $$P=\...
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Concentration Measures

There are several metrics used to identify market power. Such as ... the 'n' concentration ratio (the proportion of overall sales given by the top n firms) and the Herfindhal index. However, there ...
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Have countries with a monopoly on a resource in an area ever established 1-company monopolies in that area to drive up price?

Say its the 18th century and South America wants tea. Britain, for example could have a monopoly on the tea trade in the area. However if multiple British companies sell in the area they will drive ...
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Constant MC - Monopolstic Competition

I would like to know if it is possible to have constant marginal costs (MC) in a business that is operating on a market, that is defined by monopolistic competition? The company is a construction ...
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Is the global Automobile Industry changing from an oligopoly to monopolistic competition?

The current situation is the automobile industry is an oligopoly as there are few big firms and massive barriers to entry due to cost. However, The industry seems like it is changing to a monopolist ...
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Free market defense against anti-competitive behavior?

One argument against a completely free market economy without "government" oversight is the tendency towards anti-competitive behavior. The argument is that government laws are needed to prevent anti-...
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Monopoly and competitive output levels

Why do markets that are dominated by a single seller have a tendency to maximize profits at lower levels of output than their competitive counterpart? Why is the competitive market equilibrium price ...
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Are market structures on a spectrum?

So I understand that each market structure has their own characteristics, and that for instance Perfect Competition involves high competition, and I believe Monopolistic competition slightly less so, ...
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Cobb-Douglas production function with continuum of goods

I'm trying to derive the solution to a final producer with unit elasticity of substitution and a continuum of inputs (of measure $x$). She minimizes input costs, given an output of $q$. $$ \min_{\{y(...
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Would you consider airport parking to be a monopoly or a monopolistic market?

If you look at it one way and group the different companies that offer parking, it could be a monopoly as that is the only place you can park. On the other hand, the different companies offer ...
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Log-Linearizing a Dixit-Stiglitz function

In a New-Keynesian Model, the Consumption index $C_t=\left(\int_0^1{C_t(i)^{1-\gamma} \ di}\right)^{\frac{1}{1-\gamma}}$ is log-linearized to $\tilde{c_t}=\int_0^1{\tilde{c_t}(i) \ di}$ where ...
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Why does demand curve shift in, in a monopolistic competitive market?

In a monopolistic competitive market, demand curves shift in, if more firms enter the market. I can't seem to wrap my head around it. Demand remains the same, supply has increased. Shouldn't entry of ...
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Market behavior when consumer must choose product before knowing price?

What forces influence the price in a market, wherein the consumer must choose a good before knowing the price, and afterwards only knows the price of the good purchased, not that of any competing ...
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Oligopoly and Monopolistic Competition [duplicate]

I am a DP student and am writing an extended essay in the evaluation of a market structure. Are there any university level books or references that explain Oligopoly, Monopolistic competition and its ...
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In which market structure does the consumer has almost zero knowledge about the good?

Consider goods that are almost identical (e.g. cement) and require technical knowledge to understand their merit, which an ordinary consumer might not possess. What then is the feature characteristic ...
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A high store loyalty indicates what kind of competition among cement retailers selling products of the same brand?

To provide some context, this question occurred to me while I was considering the cement retail market. If one considers retailers selling cement of only one brand, then the concept of brand loyalty ...
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Will there be any competition amongst cement retailers?

If we consider a cement manufaturer in a given country, say India, then will the cement retailers of that companies' product compete with each other? And if so, then what kind of a competition will it ...
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What are some ways to add quality to the supply-demand model?

Please excuse me, I hardly know anything about economics yet. When the quality of a product changes, the demand curve moves. But what if there are different versions of a product, of varying ...