What is Monopolistic Competition

One sort of imperfect competition is known as monopolistic competition. In this type of competition, numerous producers compete against one another, but they provide items that are distinct from one another and, as a result, are not ideal substitutes. Monopolistic competition occurs when a company accepts the prices that are being charged by its competitors as indisputable and disregards the influence that its own pricing have on the prices that other companies charge. In the event that this occurs in the presence of a government that makes use of coercion, monopolistic competition will inevitably transform into monopoly granted by the government. The business, in contrast to ideal competition, keeps some capacity available for use. In the process of modeling industries, monopolistic competition models are frequently utilized. Examples of businesses that have market structures that are comparable to monopolistic competition can be found in textbooks. These industries include restaurants, cereals, apparel, shoes, and service industries particularly in large cities. Edward Hastings Chamberlin, who established the theory of monopolistic competition by publishing a groundbreaking book on the subject in 1933 titled Theory of Monopolistic Competition, is considered to be the “founding father” of the theory. A similar topic, namely the differentiation between perfect and imperfect competition, was the subject of a book written by Joan Robinson and titled The Economics of Imperfect Competition to be published. Additional research on monopolistic competition was carried out by Dixit and Stiglitz, who developed the Dixit-Stiglitz model. This model has been shown to be useful and has been utilized in the subfields of international trade theory, macroeconomics, and economic geography.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Monopolistic competition

Chapter 2: Microeconomics

Chapter 3: Monopoly

Chapter 4: Oligopoly

Chapter 5: Perfect competition

Chapter 6: Imperfect competition

Chapter 7: Two-part tariff

Chapter 8: Price discrimination

Chapter 9: Barriers to entry

Chapter 10: Monopoly profit

Chapter 11: Substitute good

Chapter 12: Market power

Chapter 13: Marginal revenue

Chapter 14: Non-price competition

Chapter 15: Market structure

Chapter 16: Competition (economics)

Chapter 17: Edward Chamberlin

Chapter 18: Bilateral monopoly

Chapter 19: Margin (economics)

Chapter 20: Profit (economics)

Chapter 21: Monopoly price

(II) Answering the public top questions about monopolistic competition.

(III) Real world examples for the usage of monopolistic competition in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Monopolistic Competition.

Macroeconomics