NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Monopoly Power and Endogenous Product Variety: Distortions and Remedies

Florin O. Bilbiie, Fabio Ghironi, Marc J. Melitz

NBER Working Paper No. 14383
Issued in October 2008

---- Acknowledgements -----

For helpful comments, we thank Hugo Hopenhayn, Gianmario Impullitti, Jinill Kim, and seminar and conference participants at Catholic University Lisbon, Chicago GSB, Cleveland Fed, Cornell, CSEF-IGIER Symposium on Economics and Institutions, ECB, EUI, ESEM 2007, ESSIM 2005, EUI, Fed Board, IZA Workshop on Firm Dynamics, Leuven, London Business School, MIT, NBER EFCE Summer Institute 2005, New York Fed, Northeastern, Princeton, SED 2007, Swiss National Bank, Universite de Toulouse, and University of Connecticut. We are grateful to Nicholas Sim and Pinar Uysal for excellent research assistance. Remaining errors are our responsibility. Bilbiie thanks the ECB, the CEP at LSE, and the NBER for hospitality in 2004, 2005, and 2006-2007, respectively, and Nuffield College at Oxford for financial support during 2004-2007. Ghironi and Melitz thank the NSF for financial support through a grant to the NBER. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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