welfare? We estimate a spatial model of demand for liquor that allows us to calculate counterfactual configurations of stores … that maximize profit and welfare. We find that welfare maximizing networks have roughly twice as many stores as would … maximize profit. Moreover, the actual network is much more similar in size and configuration to the welfare maximizing …

welfare on average than a social planner would obtain, but that the Markov perfect equilibrium shifts a substantial amount of … welfare from consumers to producers. Finally, I provide simulation evidence that an anti-trust policy in the form of a … concentration restriction would be welfare reducing with high probability. …

of goods increase welfare, there is little evidence on the effect of product redesigns. We develop a model of redesign … simulated counterfactuals, we find that redesigns lead to large increases in welfare, as well as substantial profit for firms …, due to the strong preferences consumers display for new model designs. We also show that welfare would be improved if …