Modeling the Market Based on Monopolistic Competition of Trade: Case Study of Auto Market, M.Sc. Thesis Sharif University of Technology ; Abedini, Javad (Supervisor)
Abstract
Concentration brings a twofold result to the market. From one side, it reduces the competition and then the number of varieties in the market, which discourages consumption; from another side, however, it reduces the price of goods due to increasing returns to scale and so encourages consumption. This controversial role of concentration raises the question that which degree of concentration might be, say, optimum for the market. Based on the Krugman approach, this study makes a relation between the number of firms, export volume, marginal and average fixed cost of production. We show that when number of firms reduces in the market, export volume could increase because of a reduction in...
Cataloging briefModeling the Market Based on Monopolistic Competition of Trade: Case Study of Auto Market, M.Sc. Thesis Sharif University of Technology ; Abedini, Javad (Supervisor)
Abstract
Concentration brings a twofold result to the market. From one side, it reduces the competition and then the number of varieties in the market, which discourages consumption; from another side, however, it reduces the price of goods due to increasing returns to scale and so encourages consumption. This controversial role of concentration raises the question that which degree of concentration might be, say, optimum for the market. Based on the Krugman approach, this study makes a relation between the number of firms, export volume, marginal and average fixed cost of production. We show that when number of firms reduces in the market, export volume could increase because of a reduction in...
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