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| Vincent Boitier |
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| ''Monopolistic competition with infinite product variety networks'' |
| ( 2025, Vol. 45 No.1 ) |
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| In this article, I develop a new monopolistic competition model where the product variety space is a network defined as a "graphon". I determine and fully characterize the free-entry equilibrium of such a new setting. I obtain two major results. First, I find that denser networks generate less entries, lower aggregate quantities and lower welfare. Second, compared to the standard monopolistic competition model without network structure, the new setting generates more entries, higher aggregate quantities and higher welfare. |
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| Keywords: monopolistic competition, free entry, networks, graphon |
JEL: D4 - Market Structure and Pricing: General
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Apr 12 2023 | | Manuscript Accepted : Mar 30 2025 |
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