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Contributions to Game Theory and Management, 2011, Volume 4, Pages 71–104 (Mi cgtm180)  
Product Diversity in a Vertical Distribution Channel under Monopolistic Competition

Igor Bykadorovab, Sergey Kokovinab, Evgeny Zhelobodkob

a Sobolev Institute of Mathematics, Siberian Branch of the Russian Academy of Sciences, Acad. Koptyug avenue 4, Novosibirsk, 630090, Russia
b Novosibirsk State University, Pirogova str. 2, Novosibirsk, 630090, Russia
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Abstract: In Russia the chain-stores gained a considerable market power. In the paper we combine a Dixit–Stiglitz industry with a monopolistic retailer. The questions addressed are: Does the retailer always deteriorate welfare, prices and variety of goods? Which market structure is worse: Nash or Stackelberg behavior? What should be the public policy in this area?
Keywords: monopolistic competition, Dixit–Stiglitz model, retailer, Nash equilibrium, Stackelberg equilibrium, social welfare, Pigouvian taxation.
Document Type: Article
Language: English
Citation: Igor Bykadorov, Sergey Kokovin, Evgeny Zhelobodko, “Product Diversity in a Vertical Distribution Channel under Monopolistic Competition”, Contributions to Game Theory and Management, 4 (2011), 71–104
Citation in format AMSBIB
\Bibitem{BykKokZhe11}
\by Igor~Bykadorov, Sergey~Kokovin, Evgeny~Zhelobodko
\paper Product Diversity in a Vertical Distribution Channel under Monopolistic Competition
\jour Contributions to Game Theory and Management
\yr 2011
\vol 4
\pages 71--104
\mathnet{http://mi.mathnet.ru/cgtm180}
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