How Costly Are Markups? · All figures

Figure I1. Love For Variety Effects

Aggregate productivity \(\log Z\) as a function of the mass of varieties \(\log N\). The parameter \(\varkappa\) controls the strength of the variety effect: \(\varkappa=0\) is our benchmark model, \(\varkappa=-0.1\) has a much weaker variety effect, \(\varkappa=+0.1\) has a much stronger variety effect.

Figure I1. Love For Variety Effects