RE: Re: RE: Re: Re: brad de long textbook

[Eric Nilsson]

RE Brad's
> It is a
> perfect illustration of how
> monopolistically competitive markets
> with entry do not produce
> anything like the social optimum...

It is also a clear example of how firms, seeking
to make profits, shape market structure: market
structure is often endogenously determined by
profit-seeking firms.

I recollect this sort of thing being discussed in
the NC literature in the mid-to late-1980s but I
don't think this point of view has done much to
change how micro is taught at the undergraduate
level. Competition in NC textbooks is still of the
static sort rather than the dynamic type of
competition discussed in the classical literature.
(Debating note: when in doubt label what you don't
like as "static" and label what you do like as
"dynamic.")

Eric
.