Economics, Econometrics and Finance
4 years ago

Survival of the Fittest: How Monopolistic Competition Thrives Despite Irrationality

MPRA Paper
Natural Selection, Irrationality and Monopolistic Competition
Guo Ying Luo

Paper Summary

The article explores how companies in an industry with different products evolve over time. Even if companies are not focused on making the most profit, monopolistic competition still happens in the long run. The most efficient companies with the best technology and market conditions survive in the end.

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