《Dixit》.pdfVIP

American Economic Association Monopolistic Competition and Optimum Product Diversity Author(s): Avinash K. Dixit and Joseph E. Stiglitz Source: The American Economic Review, Vol. 67, No. 3 (Jun., 1977), pp. 297-308 Published by: American Economic Association Stable URL: /stable/1831401 . Accessed: 07/03/2011 10:18 Your use of the JSTOR archive indicates your acceptance of JSTORs Terms and Conditions of Use, available at . /page/info/about/policies/terms.jsp. JSTORs Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at . /action/showPublisher?publisherCode=aea. . Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@. American Economic Association is collaborating with JSTOR to digitize, preserve and extend access to The American Economic Review. Monopolistic Competition and Optimum Product Diversity By AVINASH K. DIXIT AND JOSEPH E. STIGLITZ* The basic issue concerning production in potential commodity involves some fixed welfare economics is whether a market solu- set-up cost and has a constant marginal tion will yield the sociall