Monopolistic competition is used to examine rationalization behavior in response to market integration. A particular second-order condition on demand functions for differentiated products must be satisfied to generate an increase in firm size with an associated decline in equilibrium price when...

An error correction framework is used to test the long-run hypothesis that prices of natural resources commodities in the United States exhibit scarcity properties from the late nineteenth century to 1988 in the sense that real resource commodity prices have been increasing or following a...