Monopolistically Competitive Equilibria with Differentiated Commodities

Abstract

An existence theorem of monopolistically competitive equilibrium of the economy in which commodities are subject to differentiation will be proved. We start with the existence theorem of Negishi (1961) and extend it to the commodity space of measures on a compact metric space. In so doing, we have to handle the price normalization carefully.

Keywords: Monopolistic competition, Commodit differentiation, Infinite dimensional space

JEL Classification: D43, L13