Monopolistic Competition Without Apology

53 Pages Posted: 22 Aug 2016

See all articles by Jacques-François Thisse

Jacques-François Thisse

Catholic University of Louvain (UCL); Centre for Economic Policy Research (CEPR)

Philip Ushchev

National Research University Higher School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 2016

Abstract

We provide a selective survey of what has been accomplished under the heading of monopolistic competition in industrial organization and other economic fields. Among other things, we argue that monopolistic competition is a market structure in its own right, which encompasses a much broader set-up than the celebrated constant elasticity of substitution (CES) model. Although oligopolistic and monopolistic competition compete for adherents within the economics profession, we show that this dichotomy is, to a large extend, unwarranted.

Keywords: monopolistic competition, oligopoly, product differentiation, the negligibility hypothesis

JEL Classification: D43, L11, L13

Suggested Citation

Thisse, Jacques-François and Ushchev, Philip, Monopolistic Competition Without Apology (August 2016). CEPR Discussion Paper No. DP11449. Available at SSRN: https://ssrn.com/abstract=2827568

Jacques-François Thisse (Contact Author)

Catholic University of Louvain (UCL) ( email )

Place des Doyens 1
Louvain-la-Neuve, 1348
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Philip Ushchev

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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