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borderline case. Finally, we apply our setting to trade theory and uncover several new properties hindered by the CES, such as …
Persistent link: https://www.econbiz.de/10008466345
mass of varieties. We impose intuitive conditions on this function to guarantee the existence and uniqueness of a free-entry …
Persistent link: https://www.econbiz.de/10011083517
either varieties gets more and more differentiated or when the entry cost goes further and further down. …
Persistent link: https://www.econbiz.de/10005792439
the higher toughness of the market, the entry of big firms leads them to sell more through a market expansion effect … oligopolistic firms because the procompetitive effect associated with the entry of a big firm dominates the resulting decrease in …
Persistent link: https://www.econbiz.de/10005048555
The pattern of trade observed from firm-product-country data calls for a new generation of models. To address the unexplained variation in the data, we propose a new model of monopolistic competition where varieties enter preferences non-symmetrically, capturing both horizontal and vertical...
Persistent link: https://www.econbiz.de/10011083252
effect. Firms' profits increase (decrease) with the entry of local competitors when the former (latter) dominates. Downtown …
Persistent link: https://www.econbiz.de/10011084420
We study the effects of a decrease in trade costs on the spatial distribution of industry in a multi-regional economy, when a rise in the regional population of workers generates higher urban costs. When the number of cities is unaffected by falling trade costs, small cities become smaller for...
Persistent link: https://www.econbiz.de/10005123704
governing the organization of economic space. Other standard lines of research in location theory are also discussed while …
Persistent link: https://www.econbiz.de/10005123960
incumbents but acts as a strong deterrent against entry. Product variety is determined by the degree of spatial contestability of … entry deterring effect of discriminatory pricing is dominant whatever the degree of spatial contestability or the nature of …, the more effective is discriminatory pricing at limiting entry and the more likely is it that mill pricing is socially …
Persistent link: https://www.econbiz.de/10005136598
We investigate whether an aging population may challenge the supremacy of large working-cities. To this end, we develop an economic geography model with two types of individuals (workers and retirees) and two sectors (local services and manufacturing). Workers produce and consume; the elderly...
Persistent link: https://www.econbiz.de/10005048549