A Tractable Alternative to Cobb-Douglas Utility for Imperfect Competition
Posted: 7 Dec 2000
This paper proposes a tractable alternative to Cobb-Douglas utility to resolve the problems of lack of reservation price and income effects in demand functions derived from Cobb-Douglas utility or quasilinear utility. Another advantage of this alternative is that it provides a closed-form general equilibrium in the case where some industries are monopoly while others are imperfectly competitive.
JEL Classification: B41, D11, E21
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