Citations (9)



Technology Choice and Monopolistic Competition

Walter Elberfeld

University of Cologne

Georg Götz

University of Giessen - Department of Economics

October 25, 1999

The purpose of this article is twofold. First, it deals with the question of technology choice in a framework where agents are 'small'. It shows that firms generically choose the same technology although different technologies are available. Our simple static model yields a non-monotonous relation between market size and the number of firms. Second, it re-examines the Dixit-Stiglitz model of monopolistic competition. We show that the comparative statics and welfare results from the often used CES case do not extend to the more general case of a variable elasticity of substitution (VES). While the comparative static results from the VES case are intuitive, the welfare analysis reveals some unappealing features of this approach.

Number of Pages in PDF File: 24

Open PDF in Browser Download This Paper

Date posted: June 14, 2000  

Suggested Citation

Elberfeld, Walter and Götz, Georg, Technology Choice and Monopolistic Competition (October 25, 1999). Available at SSRN: http://ssrn.com/abstract=192050 or http://dx.doi.org/10.2139/ssrn.192050

Contact Information

Walter Elberfeld
University of Cologne ( email )
Staatswissenschaftliches Seminar
50931 Koeln
+49 221-470-4356 (Phone)
+49 221-470-5068 (Fax)
Georg Götz (Contact Author)
University of Giessen - Department of Economics ( email )
Licher Str. 62
Giessen, Hessen D-35394
+49 641 99 22050 (Phone)
+49 641 99 19867 (Fax)
HOME PAGE: http://wiwi.uni-giessen.de/home/goetz/
Feedback to SSRN

Paper statistics
Abstract Views: 813
Downloads: 123
Download Rank: 154,092
Citations:  9

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.360 seconds