Center Research Seminar. Speaker: Ph.D. Ph.Uschev

February 3, made a presentation on «How does the market size affect the product line scope? The case of a closed economy», Senior Research Fellow of the TMSE Uschev Philipp.

Ph.Uschev

February 3, made a presentation on «How does the market size affect the product line scope? The case of a closed economy», Senior Research Fellow of the MSSE Philipp Uschev.

We propose a model of monopolistic competition with multi-product firms, choosing their product line. Firms bear costs of three kinds: variable production costs, fixed costs of creating a variety (like R&D) and costs of scope, i.e., of the product line length. When the market size (population) increases, the overall variety always increases. The firms’ product line and price increase (decrease) when the elasticity of substitution increases (decreases), whereas the firm size (output) reacts oppositely (when both cost functions are strictly convex). This suggests a theoretical rationale for cross-countries differences in the size and scope of firms, or for possible consequences of trade liberalization.

Address of the seminar: Room 216, 3, 10th Line VO.

To pass a building at 3, 10th Line V.O. students and staff of HSE placing a pass.
Visitors pre-register for the seminar on e-mail ces.hse@gmail.com or call (812) 406-70-76 and go into the building through the list, showing proof of identity.

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