Shimomura, Ken-ichi; Thisse, Jacques-François - 2009
innovation,
international trade, and economic geography (Matsuyama, 1995). It is fair
to say that both approaches are useful to …1−αρ
·Xα (1)
whereQj is the output level of oligopolistic firmj=1,...,N,q(i)the output
level of the MC-firmi∈[0,M],X the …
Nsummationdisplay
j=1
PjQj +
integraldisplay M
0
p(i)q(i)di+X ≤Y
wherePj isthepriceofvarietyj=1,...,N,p(i)thepriceofvarietyi∈[0,M],
andY …