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Dixit Stiglitz (1977) - Monopolistic Competition And Optimum Product Diversity (view source)
Revision as of 14:49, 7 December 2010
, 14:49, 7 December 2010→Consumer optimization
<math>x_i = \left(\frac{1}{p_i}\right)^{\frac{1}{1-\rho}} \cdot \frac{1}{q^{1-\rho} y} \,</math>
where <math>y = (\sum_{i=1}^{n} x^\rho )^{\frac{1}{\rho}} \;</math> and <math>q = \left(\sum_{i=1}^{n}p_i^{-1}{\frac{1-\rho}{\rho}}\right)^{-\frac{1-\rho}{\rho}}\,</math>
===Market Behaviour===
