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Multiproduct firms, income distribution, and trade

Schafgans, Marcia M. A. and Stibora, Joachim (2014) Multiproduct firms, income distribution, and trade. Economics of Industry (EI 52). Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

We develop a general equilibrium model of multiproduct fi…rms with quality differentiated goods. Households are characterized by an heterogeneous taste for the differentiated good and their income level. The use of non-homothetic preferences and vertical product differentiation (product quality) enables us to analyze how distributional changes in income affect the number of vertically differentiated …firms, their product range and prices in the presence of strategic interaction across …rms. The implications of lowering the barriers to trade within this setting are considered as well.

Item Type: Monograph (Report)
Official URL: http://sticerd.lse.ac.uk/
Additional Information: © 2014 The Authors
Divisions: Economics
STICERD
Subjects: H Social Sciences > HB Economic Theory
Date Deposited: 23 Jul 2014 11:18
Last Modified: 14 Sep 2021 23:06
URI: http://eprints.lse.ac.uk/id/eprint/58168

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