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Chamberlin without differentiation: Soft capacity constrained price competition with free entry |
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| Authors: | Marie-Laure Cabon-Dhersin Nicolas Drouhin |
| Institution: | 1. Normandie Univ, Unirouen, LERN, Rouen, France;2. Normandie Univ, Unicaen, CREM, CNRS UMR, Caen, France |
| Abstract: | We show that the long-term properties of price and cost in Chamberlin's monopolistic competition model can be reproduced with a soft capacity constrained price competition oligopoly model for a homogeneous good with free entry. |
| Keywords: | Chamberlin free entry monopolistic competition price competition soft capacity constraint U-shaped cost function |