Geodesic
Product Diversity in a Vertical Distribution Channel under Monopolistic Competition
Contributions to game theory and management, Tome 4 (2011), pp. 71-104

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In Russia the chain-stores gained a considerable market power. In the paper we combine a Dixit–Stiglitz industry with a monopolistic retailer. The questions addressed are: Does the retailer always deteriorate welfare, prices and variety of goods? Which market structure is worse: Nash or Stackelberg behavior? What should be the public policy in this area?
Keywords: monopolistic competition, Dixit–Stiglitz model, retailer, Nash equilibrium, Stackelberg equilibrium, social welfare, Pigouvian taxation. 
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     author = {Igor Bykadorov and Sergey Kokovin and Evgeny Zhelobodko},
     title = {Product {Diversity} in a {Vertical} {Distribution} {Channel} under {Monopolistic} {Competition}},
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Igor Bykadorov; Sergey Kokovin; Evgeny Zhelobodko. Product Diversity in a Vertical Distribution Channel under Monopolistic Competition. Contributions to game theory and management, Tome 4 (2011), pp. 71-104. http://geodesic.mathdoc.fr/item/CGTM_2011_4_a6/