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Inequality, Market Power, and Product Diversity


Reto Foellmi


University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research

Josef Zweimüller


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

Abstract:     
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 competition

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Date posted: April 28, 2003  

Suggested Citation

Foellmi, Reto and Zweimüller, Josef, Inequality, Market Power, and Product Diversity (March 4, 2003). Zurich IEER Working Paper No. 145. Available at SSRN: http://ssrn.com/abstract=387801 or http://dx.doi.org/10.2139/ssrn.387801

Contact Information

Reto Foellmi (Contact Author)
University of Saint Gallen - Swiss Institute for International Economics and Applied Economic Research ( email )
Bodanstrasse 8
St. Gallen, 9000
Switzerland
+41-71-224-2269 (Phone)
+41-71-224-2298 (Fax)
Josef Zweimueller
University of Zurich - Department of Economics Library ( email )
Raemistrasse 71
Zuerich, 8006
Switzerland
+411 634 3724 (Phone)
+411 634 4907 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Feedback to SSRN (Beta)


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