Monopolistic competition could lower prices for consumers, but limit product variety.
The paper compares three types of competition (Cournot, Bertrand, and monopolistic) in an industry with different products. When many firms can join the market, the ones in monopolistic competition offer cheaper prices but fewer options compared to oligopoly firms. In a large economy, all approaches lead to similar outcomes. This could be either a competitive or a monopolistically competitive situation, depending on consumer preferences.