Term
|
Definition
| A market structure in which many firms sell products that are similar but not identical. |
|
|
Term
| The Product-Variety Externality |
|
Definition
| Entry of a new firm provides new products and new consumer surplus, conveying a positive externality. |
|
|
Term
| The Business-Stealing Externality |
|
Definition
| Entry of new firm takes customers and profit away from existing firms, conveying a negative externality. |
|
|
Term
|
Definition
- Manipulates people's tastes to create desires
- Impedes competition, brand loyalty
|
|
|
Term
|
Definition
- Provide information to customers
- Fosters competition
- Less market power for each firm
- Easy to enter/exit
- Policy makers agree
|
|
|
