Monopolistic Product Line Competition with Ex Post Consumer Heterogeneity

Nikolaos Georgantzís, Aurora García-Gallego

Department of Food Economics and Marketing, University of Reading, Reading, UK;LEE and Department of Economics, Universitat Jaume I, Castellón, Spain.
LEE and Department of Economics, Universitat Jaume I, Castellón, Spain.

DOI: 10.4236/tel.[phone]                

Abstract

We model monopolistic competition in product lines, assuming that consumer heterogeneity is the result rather than the cause of product variety. Our results contradict some well-known policy implications yielded by the standard monopolistic competition framework.

Keywords

Consumer Heterogeneity; Product Diversity; Monopolistic Competition

Conflicts of Interest

The authors declare no conflicts of interest.

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