in option prices. Consumption and dividends remain smooth, and the model is consistent with salient features of …

, producers are larger in larger markets, even after controlling for differences between markets' demographic and factor prices … producers. A robust prediction of oligopoly theory is that larger markets are more competitive and have lower price-cost markups …. Because producers in more competitive markets must sell more at a lower markup to recover their fixed costs, oligopoly theory …

interactions: Increasing the number of consumers leaves the distributions of producers' prices and other choices unchanged. In many … models featuring non-trivial strategic considerations, producers' prices fall as their numbers increase. Hence, examining the …, exit decisions, and prices from 224 U.S. cities. Given factor prices and demographic variables, increasing a city's size …