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Dixit-Stiglitz utility
The Dixit-Stiglitz function used as a utility function.
Similar MatchesDixit-Stiglitz functionDixit-Stiglitz function
Really just a symmetric CES function, the innovation of Dixit and Stiglitz (1977) was to allow the number of arguments to be variable. Used originally as a utility function, with elasticity of substitution greater than one the function displays a preference for variety. Used as a component of a production function, the same property implies that costs fall with variety.
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