26 septembre 2017 : Vincent BOITIER
« Free entry in general equilibrium models of monopolistic competition : A comment »
coécrit avec Antoine Vatan (CEPII).
In the present methodological article, we establish that free entry is ill-posed in general equilibrium models of monopolistic competition such a way that the equilibrium number of firms in the long-run is misdetermined.
We also show that a suitable formulation to capture free entry in a general equilibrium analysis is when entry is determined through occupational choice.
JEL codes : B41, L11, L13
Keywords : Methodological issues, Monopolistic competition, Free entry, Occupational choice, Ownership Structure
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