EERC news
May 27, 2016
The 40th Anniversary Research Workshop was held in Kyiv School of Economics, Kyiv May 21 - 22, 2016.
December 15, 2015
Your idea could be the next winner of the Global Development Awards Competition 2016. Every year, GDN awards up to $US 90,000 worth of grants to research proposals and innovative development projects as part of the Global Development Awards Competition. The deadline for submitting the proposals is 15 January, 2016.
December 02, 2015
Cеминар будет проводиться в КШЕ в Киеве 117-18 декабря 2015 года.
August 05, 2015
The unique KSE MBA program efficiently combines a comprehensive approach to a real-life case learning, analytical methods for decision-making and is specifically designed to educate a new generation of business leaders on how to make the most out of opportunities the global markets offer. KSE MBA combines high academic standards of top EU and US business schools with practical real-life cases from top employers of Ukraine which constitute an essential part of the program curriculum.
Working paper info
Heterogeneous consumers and market structure in a monopolistically competitive setting
Osharin Alexander, Verbus Valery
A. Enterprises and product markets
Policy brief

The present paper extends the traditional Dixit and Stiglitz set-up by introducing consumers’/workers’ heterogeneity into a general equilibrium model of monopolistic competition. The model obtains a closed-form solution for a symmetric equilibrium and shows how the market outcome depends on the joint distribution of consumers’/workers’ taste and labor productivities. In contrast to the traditional framework, our model predicts that the short-run equilibrium price may vary with the number of firms, demonstrating both anti- and pro-competitive behavior, which is in accordance with economic intuition and empirical evidence. Proposed approach is also capable to explain variability of the long-run equilibrium markups, which is observed empirically. Unlike the standard CES model, where markups are constant, in our setting the equilibrium markups depend on the covariance of tastes and productivity.

List of working papers