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

Author

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  • Marie-Laure Cabon-Dhersin

    (LERN - Laboratoire d'Economie Rouen Normandie - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

  • Nicolas Drouhin

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, UNICAEN UFR SEGGAT - Université de Caen Normandie - UFR de Sciences Économiques, Gestion, Géographie et Aménagement des Territoires - UNICAEN - Université de Caen Normandie - NU - Normandie Université)

Abstract

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.

Suggested Citation

  • Marie-Laure Cabon-Dhersin & Nicolas Drouhin, 2022. "Chamberlin without differentiation: Soft-capacity constrained price competition with free entry," Post-Print halshs-03378500, HAL.
    • Handle: RePEc:hal:journl:halshs-03378500
    DOI: 10.1111/ijet.12339
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03378500
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    References listed on IDEAS

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    4. Marie‐Laure Cabon‐Dhersin & Nicolas Drouhin, 2014. "Tacit Collusion in a One‐Shot Game of Price Competition with Soft Capacity Constraints," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(2), pages 427-442, June.
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    Keywords

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