Monopolistic Competition and New Products: A Conjectural Equilibrium Approach


  • MPRA Paper


  • In this paper we generalize the heterogeneous risk adverse agents’ model of diffusion of new products in a multi-firm, heterogeneous and interacting agent’s environment. We use a model of choice under uncertainty based on Bayesian theory. We discuss the possibility of product failures, the set of equilibria, their stability and some welfare properties.

fecha de publicación

  • 2009-01

Líneas de investigación

  • Lock-in
  • Monopolistic Competition
  • Multiple Equilibria
  • Product Diffusion
  • Risk Aversion


  • 15120