Journal ArticleDOI
True Monopolistic Competition as a Result of Imperfect Information
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TLDR
In this paper, the authors restate Hart's definition of large group monopolistic competition, distinguish it from oligopolistic competition and raise the question of whether there are reasonable circumstances that give rise to true monopoly competition as defined.Abstract:
The paper restates Hart's [1985a, 1985b] definition of large group monopolistic competition, distinguishes it from oligopolistic competition, and raises the question of whether there are reasonable circumstances that give rise to true monopolistic competition as defined. The purpose is to show that consumers' imperfect information may create conditions that will turn an otherwise oligopolistic market into a truly monopolistically competitive one.read more
Citations
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Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales
TL;DR: Krishnan et al. as mentioned in this paper investigated the long tail phenomenon of the Pareto principle and found that consumers' usage of Internet search and discovery tools, such as recommendation engines, is associated with an increase in the share of niche products.
Journal ArticleDOI
Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales
TL;DR: Krishnan et al. as mentioned in this paper investigated the long tail phenomenon of the Pareto principle and found that consumers' usage of Internet search and discovery tools, such as recommendation engines, is associated with an increase in the share of niche products.
Book ChapterDOI
Chapter 13 Imperfect information in the product market
TL;DR: In the market, consumers do not know the characteristics of all the products in the market or the prices at which they are available at all sellers as mentioned in this paper. And given the myriad of variations in product characteristics, the consumer is constantly making decisions concerning whether the differences in qualities are worth the difference in prices.
Journal ArticleDOI
Using price distributions to estimate search costs
Han Hong,Matthew Shum +1 more
TL;DR: In this article, the equilibrium restrictions implied by standard search models can be used to estimate search-cost distributions using price data alone, using both sequential and non-sequential search strategies.
Journal ArticleDOI
Prominence and consumer search
TL;DR: In this article, the authors examine the implications of "prominence" in search markets and find that making a firm prominent will typically lead to higher industry profit but lower consumer surplus and welfare.
References
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Journal ArticleDOI
Monopolistic competition with outside goods
TL;DR: In this article, a model of spatial competition in which a second commodity is explicitly treated is presented, and it is shown that a zero-profit equilibrium with symmetrically located firms may exhibit rather strange properties.
Journal ArticleDOI
Equilibrium with Product Differentiation
TL;DR: In this article, conditions under which decreases in the intensity of consumer preferences reduce price were given, and it was shown that, with certain types of demand curves, entry can eliminate price-cost markups even given product differentiation.