Monopolistic Competition and Efficiency under Firm Heterogeneity and Nonadditive Preferences
研究了Melitz-Ottaviano模型中异质性企业的垄断竞争，发现市场进入数量最优但选择不足，导致品种过多、总量过少，资源错配。
We consider the single-sector version of the Melitz-Ottaviano model of monopolistic competition with heterogeneous firms. We characterize the first-best and market allocations. We find that the market provides the first-best level of entry but too little selection; hence, the market provides too many varieties and too little aggregate quantity, and allocates too little (much) production to low (high) cost realizations. Allowing for a broad family of quantity allocation functions, we establish sufficient conditions for the global optimality of the first-best solution. Several important extensions are also examined.