{"title":"Dynamic Monopolistic Competition","quality_controlled":"1","status":"public","publisher":"Springer","publication_status":"published","abstract":[{"lang":"eng","text":"I study a dynamic variant of the Dixit–Stiglitz (Am Econ Rev 67(3), 1977) model of monopolistic competition by introducing price stickiness à la Fershtman and Kamien (Econometrica 55(5), 1987). The analysis is restricted to bounded quantity and price paths that fulfill the necessary conditions for an open-loop Nash equilibrium. I show that there exists a symmetric steady state and that its stability depends on the degree of product differentiation. When moving from complements to perfect substitutes, the steady state is either a locally asymptotically unstable (spiral) source, a stable (spiral) sink or a saddle point. I further apply the Hopf bifurcation theorem and prove the existence of limit cycles, when passing from a stable to an unstable steady state. Lastly, I provide a numerical example and show that there exists a stable limit cycle."}],"publication_identifier":{"issn":["1573-2878"]},"year":"2021","type":"journal_article","issue":"2","_id":"45640","intvolume":"       189","volume":189,"author":[{"last_name":"Hoof","full_name":"Hoof, Simon","first_name":"Simon"}],"citation":{"short":"S. Hoof, Journal of Optimization Theory and Applications 189 (2021).","apa":"Hoof, S. (2021). Dynamic Monopolistic Competition. <i>Journal of Optimization Theory and Applications</i>, <i>189</i>(2).","mla":"Hoof, Simon. “Dynamic Monopolistic Competition.” <i>Journal of Optimization Theory and Applications</i>, vol. 189, no. 2, Springer, 2021.","ieee":"S. Hoof, “Dynamic Monopolistic Competition,” <i>Journal of Optimization Theory and Applications</i>, vol. 189, no. 2, 2021.","chicago":"Hoof, Simon. “Dynamic Monopolistic Competition.” <i>Journal of Optimization Theory and Applications</i> 189, no. 2 (2021).","ama":"Hoof S. Dynamic Monopolistic Competition. <i>Journal of Optimization Theory and Applications</i>. 2021;189(2).","bibtex":"@article{Hoof_2021, title={Dynamic Monopolistic Competition}, volume={189}, number={2}, journal={Journal of Optimization Theory and Applications}, publisher={Springer}, author={Hoof, Simon}, year={2021} }"},"publication":"Journal of Optimization Theory and Applications","department":[{"_id":"205"},{"_id":"475"}],"date_updated":"2023-07-05T07:23:54Z","project":[{"grant_number":"160364472","name":"SFB 901 - A3: SFB 901 - Der Markt für Services: Anreize, Algorithmen, Implementation (Subproject A3)","_id":"7"},{"name":"SFB 901: SFB 901: On-The-Fly Computing - Individualisierte IT-Dienstleistungen in dynamischen Märkten ","grant_number":"160364472","_id":"1"},{"name":"SFB 901 - A: SFB 901 - Project Area A","_id":"2"}],"user_id":"477","date_created":"2023-06-15T14:05:25Z","language":[{"iso":"eng"}]}