Inequality, Market Power, and Product Diversity
University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research
University of Zurich - Department of Economics Library; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)
March 4, 2003
Zurich IEER Working Paper No. 145
We analyze a macroeconomic model of monopolistic competition in which consumers earn unequal incomes. When preferences are non-homothetic, the distribution of income affects equilibrium mark-ups and equilibrium product diversity.
Number of Pages in PDF File: 12
Keywords: Inequality, markups, monopolistic competitionworking papers series
Date posted: April 28, 2003
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