Growth and differentiated oligopoly

The paper presents a model of endogenous growth and strategic interdependen ce among firms, in the form of differentiated oligopoly. It shows that the degree of interdependence among firms affects the growth rate of available varieties along a balanced growth path. The resulting link between market i nterdependence and varieties' growth may be positive or negative, because o pposite forces are at work. (C) 2000 Elsevier Science S.A. All rights reser ved.