Monopolistic Competition and New Products: A Conjectural Equilibrium Approach

21 Pages Posted: 6 Feb 2009

See all articles by Francesco Bogliacino

Francesco Bogliacino

National University of Colombia - Department of Economics

Giorgio Rampa

University of Pavia

Date Written: January 8, 2009

Abstract

In this paper we generalize the heterogeneous risk adverse agents model of diffusion of new products in a multi-firm, heterogeneous and interacting agents environment. We use a model of choice under uncertainty based on Bayesian theory. We discuss the possibility of product failures, the set of equilibria, their stability and some welfare properties.

Keywords: Product diffusion, Risk aversion, Lock-in, Monopolistic competition, Multiple equilibria.

JEL Classification: L15, D81, O33

Suggested Citation

Bogliacino, Francesco and Rampa, Giorgio, Monopolistic Competition and New Products: A Conjectural Equilibrium Approach (January 8, 2009). Available at SSRN: https://ssrn.com/abstract=1333063 or http://dx.doi.org/10.2139/ssrn.1333063

Francesco Bogliacino (Contact Author)

National University of Colombia - Department of Economics ( email )

Carrera 30 Calle 45 Ciudad Universitaria
Bogotá
Colombia

Giorgio Rampa

University of Pavia ( email )

via San Felice, 5
Pavia, 27100
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
41
Abstract Views
499
PlumX Metrics