Article: article from journal or magazin.
Monopoly, Product Diversity and Welfare
Regional Science and Urban Economics
The more homogeneous its customers the easier it is for a monopolist to extract consumer surplus. Offering a range of product varieties (or spatial locations) sorts consumers into groups with similar preferences. The profit opportunities this yields may result in a monopoly providing more product choice than is socially optimal. Nevertheless, monopoly may be socially preferable to a free entry imperfectly competitive equilibrium.
Web of science
Last modification date