Inequality in Models with a Competition for Market Shares

This paper develops a framework to systematically study how changes in market conditions affect the equilibrium inequality between heterogeneous agents. By stating our setting as competition for shares, we can derive predictions vastly different models. approach allows us identify common structure, e.g., monopolistic competition, perfect or prizes, that explains why these models deliver similar predictions. We apply results problems from trade, theory, consumption inequality, political economics and marketing, relate some of predicted patterns empirical evidence.