Chamberlin without differentiation: Soft-capacity constrained price competition with free entry

Marie-Laure Cabon-Dhersin (1) , Nicolas Drouhin (2, 3)

1 LERN - Laboratoire d'Economie Rouen Normandie
2 CREM - Centre de recherche en économie et management
3 UNICAEN UFR SEGGAT - Université de Caen Normandie - UFR de Sciences Économiques, Gestion, Géographie et Aménagement des Territoires

We show that the long-term properties of price and cost in Chamberlin's (1933) monopolistic competition model can be reproduced with a soft-capacity constrained price competition oligopoly model for a homogeneous good with free entry.

Mots clés: price competition; soft-capacity constraint; free entry; U-shaped cost function; monopolistic competition; Chamberlin

Domaines: Economies et finances

Marie-Laure Cabon-Dhersin, Nicolas Drouhin. Chamberlin without differentiation: Soft-capacity constrained price competition with free entry. International Journal of Economic Theory, inPress, ⟨10.1111/ijet.12339⟩. ⟨halshs-03378500⟩