Public research seminar. A report by Assistant Professor of Economics Mathieu Parenti

On June 13, 2013, CMSSE was held the public research seminar. Report on the theme "Monopolistic competition where atoms are “not too big”" by Assistant Professor of Economics Mathieu Parenti (C.O.R.E., Université Catholique de Louvain).

M.Parenti

On June 13, 2013, 17:00.
Public research seminar.
Assistant Professor of Economics Mathieu Parenti (C.O.R.E., Université Catholique de Louvain). "Monopolistic competition where atoms are “not too big”".

We consider a differentiated market involving a handful of oligopolistic firms and a myriad of monopolistically competitive firms. Under various specifications of preferences, we derive the conditions under which monopolistic pricing is optimal for large firms. We show that there is an upper bound on a firm's "mass" below which a large firm mimics the non-strategic behavior of small firms. Therefore, a positive technological shock can impact firm behavior so that the market structure evolves from monopolistic to oligopolistic competition.

The address of the seminar: Conference-hall (3rd floor), b. 47, pr. Rimskogo-Korsakova, Saint Petersburg.

Working language – English.