期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2012
卷号：2012
期号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：Many industries are made of a few big firms, which are able to manipulate the
market outcome, and of a host of small businesses, each of which has a negligible
impact on the market. We provide a general equilibrium framework that
encapsulates both market structures. Due to the higher toughness of competition, the entry of big firms leads them to sell more through a market expansion effect
generated by the shrinking of the monopolistically competitive fringe.
Furthermore, social welfare increases with the number of big firms because the
pro- competitive effect associated with entry dominates the resulting decrease in
product diversity. Keywords: oligopoly, monopolistic competition, product differentiation, welfare .
