Chamberlinian monopolistic competition

In Chamberlinian monopolistic competition every one of the firms have some monopoly power, but entry drives monopoly profits to zero. The concept gets its name from Edward Chamberlin.

One example where Chamberlinian monopolistic competition can be experienced is the book market. A publisher has a factual monopoly over certain titles via intellectual property rights. A book is an experience good and finding perfect legal substitutes on the market as long as the publisher rights are in effect is impossible. This however doesn't lead to high monopoly profits on any particular titles as close substitutes still remain. A best-seller cookbook for Asian cuisine still competes with other cookbooks about Asian cuisine as well as the whole cookbook genre.

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