BEHRENS, Kristian; MURATA, Yasusada - Center for Operations Research and Econometrics (CORE), … - 2007
We analyze the equilibrium and the optimal resource allocations in a monocentric city under monopolistic competition. Unlike the constant elasticity of substitution (CES) case, where the equilibrium markups are independent of the city size, we present a variable elasticity of substitution (VES)...