2015

Endogenous Product Differentiation, Market Size and Prices

Särtryck nr 2015:7

Författare: Shon FergusonÅr: 2015 Publikation: Review of International Economics Årgång (nr): 23 (1) Sidor: 45–61
Preliminär version

Endogenous Product Differentiation, Market Size and Prices Shon Ferguson


This paper provides a framework to understand how market size affects firms' investments in product differentiation in a model of monopolistic competition. The theory proposes that consumers' love of variety makes them more sensitive to product differentiation efforts by firms, which leads to more differentiated products in larger markets. The framework also predicts an inverted U-shaped effect of trade liberalization on product differentiation, with trade liberalization leading to more differentiated products when starting from autarky but then leading to less differentiated products as the countries approach free trade.


Referens:
Ferguson, Shon (2015), "Endogenous Product Differentiation, Market Size and Prices". Review of International Economics 23(1), 45–61.

Shon Ferguson

Kontakt

Tel: 08 665 4523
shon.ferguson@ifn.se

Aktuell forskare

Therese Nilsson

Forskningsområden: Globaliseringens effekterer på sociala normer och hälsa. Ekonomiska följder av hälsochocker samt ekonomisk ojämlikhet och hälsa.

Några av de frågor Therese Nilsson försöker besvara i sin forskning:

  • Hur påverkar ekonomisk och social globalisering människors hälsa?
  • Vilka effekter har införandet av fri mödravård?

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