Monopoly, Product Diversity and Welfare

Details

Serval ID
serval:BIB_A9DC4F9A1696
Type
Article: article from journal or magazin.
Collection
Publications
Title
Monopoly, Product Diversity and Welfare
Journal
Regional Science and Urban Economics
Author(s)
De Mezza D., Von Ungern-Sternberg T.
ISSN
0166-0462
Publication state
Published
Issued date
1982
Peer-reviewed
Oui
Volume
12
Number
3
Pages
313-324
Language
english
Abstract
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
Create date
19/11/2007 11:44
Last modification date
20/08/2019 16:14
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