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Optimization Letters

, Volume 13, Issue 8, pp 1803–1817 | Cite as

Monopolistic competition with investments in productivity

  • Igor BykadorovEmail author
Original Paper

Abstract

We consider a monopolistic competition model with the endogenous choice of technology. We study the impact of technological innovation on the equilibrium and socially optimal variables. We obtained the comparative statics of the equilibrium and socially optimal solutions with respect to the technological innovation parameter and utility level parameter.

Keywords

Monopolistic competition Investments in productivity Relative love for variety Comparative statics 

Notes

Acknowledgements

The author would like to thank Jacques-Francois Thisse for guiding and advising, Kristian Behrens, Richard Ericson, Federico Etro, Sergey Kokovin, Peter Neary, Alexander Shepotylo, Philip Ushchev and Natalya Volchkova for valuable comments, Evgeny Zhelobodko (1973–2013), Irina Antoshchenkova and Ekaterina Shelkova for participation in the early stages of this research, the anonymous referees for valuable comments.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Sobolev Institute of Mathematics SB RASNovosibirskRussia
  2. 2.Novosibirsk State UniversityNovosibirskRussia
  3. 3.Novosibirsk State University of Economics and ManagementNovosibirskRussia

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