全球智库信息集成服务系统(G2TT): Optimal Choice of Product Scope for Multiproduct Firms under Monopolistic Competition

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w13703
来源ID	Working Paper 13703
	Optimal Choice of Product Scope for Multiproduct Firms under Monopolistic Competition
	Robert Feenstra; Hong Ma
发表日期	2007-12-28
出版年	2007
语种	英语
摘要	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" their own sales. With identical costs across firms, opening trade leads to fewer firms surviving in each country but more varieties produced by each of those firms. With heterogeneous costs, the number of firms surviving in equilibrium is quite insensitive to the market size. When trade is opened, more firms initially enter, but the larger market size reduces the cannibalization effect and expands the optimal scope of products. As a result, the less efficient firms exit, and the larger market is accommodated by more efficient firms that produce more varieties per firm on average.
主题	International Economics ; Trade ; Industrial Organization ; Market Structure and Firm Performance
URL	https://www.nber.org/papers/w13703
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/571379
推荐引用方式 GB/T 7714	Robert Feenstra,Hong Ma. Optimal Choice of Product Scope for Multiproduct Firms under Monopolistic Competition. 2007.

条目包含的文件
文件名称/大小	资源类型	版本类型	开放类型	使用许可
w13703.pdf（176KB）	智库出版物		限制开放	CC BY-NC-SA	浏览