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A Theory of Monopolistic Competition with Horizontally Heterogeneous Consumers
Kokovin, Sergey G. - 2020
Our novel approach to modeling monopolistic competition with heterogeneous consumers involves a space of characteristics of a differentiated good (consumers' ideal points), alike Hotelling (1929). Firms have heterogeneous costs à la Melitz (2003). In addition to price setting, each firm also...
Persistent link: https://www.econbiz.de/10012841747
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Optimal Income Taxation Under Monopolistic Competition
Tarasov, Alexander; Zubrickas, Robertas - 2021
This paper is concerned with cross-dependencies between endogenous market structure and tax policy. We extend the Mirrlees (1971) model of income taxation with a monopolistic competition framework with general additively separable consumer preferences. We show that price and variety distortions...
Persistent link: https://www.econbiz.de/10013211731
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On Equilibrium in Monopolistic Competition with Endogenous Labor
Kushnir, Alexey - 2020
We consider a model of monopolistic competition with several heterogeneous sectors and endogenous labor supply. For low (high) values of the labor supply elasticity, we show that there is always a unique equilibrium. For medium values of the labor supply elasticity, the set of equilibria (if...
Persistent link: https://www.econbiz.de/10012830992
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Firm Heterogeneity and the Labour Market Effects of Trade Liberalisation
Egger, Hartmut; Kreickemeier, Udo - 2021
This paper develops a model that incorporates workers' fair wage preferences into a general equilibrium framework with monopolistic competition between heterogeneous firms à la Melitz (2003). By assuming that the wage considered to be fair by workers depends on the productivity and thus the...
Persistent link: https://www.econbiz.de/10013317452
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A Theory of Monopolistic Competition with Horizontally Heterogeneous Consumers
Kokovin, Sergey; Ozhegova, Alina; Sharapudinov, Shamil; … - 2023
Our novel approach to modeling monopolistic competition with heterogeneous firms and consumers involves spatial product differentiation. Space can be interpreted either as a geographical space or as a space of characteristics of a differentiated good. In addition to price setting, each firm also...
Persistent link: https://www.econbiz.de/10014261027
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On the Effects of Income Heterogeneity in Monopolistically Competitive Markets
Kichko, Sergey; Picard, Pierre M. - 2023
This paper studies the market and welfare effects of income heterogeneity in monopolistically competitive product markets in the context of nonhomothetic preferences. In a closed economy, where richer individuals’ expenditures are less sensitive to price change compared to poorer ones’, a...
Persistent link: https://www.econbiz.de/10014264149
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When a Nudge Backfires : Combining (Im)Plausible Deniability with Social and Economic Incentives to Promote Behavioral Change
Bolton, Gary - 2020
Both theory and recent empirical evidence on nudging suggest that observability of behavior acts as an instrument for …
Persistent link: https://www.econbiz.de/10012842390
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Belief Elicitation : Limiting Truth Telling with Information or Incentives
Danz, David - 2020
examine whether information on the offered incentives improves reports about a known objective prior. We find that transparent … information on incentives gives rise to error rates in excess of 40 percent, and that only 15 percent of participants consistently … report the truth. False reports are conservative and appear to result from a biased perception of the BSR incentives. While …
Persistent link: https://www.econbiz.de/10012842970
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Inefficient Water Pricing and Incentives for Conservation
Chakravorty, Ujjayant - 2019
We use two randomized controlled trials in Bangladesh to study a simple water conservation technology for rice production called “Alternate Wetting and Drying (AWD)”. Despite proven results in agronomic trials, our first experiment shows that AWD only saves water and increases profits in...
Persistent link: https://www.econbiz.de/10012889757
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Information, Asymmetric Incentives, or Withholding? Understanding the Self-Enforcement of Value-Added Tax
Waseem, Mazhar - 2019
During the period 1996-2000, the coverage of VAT in Pakistan rose by twenty times in terms of the number of firms in the tax net and by ten times in terms of the volume of transactions subject to it. This paper leverages this staggered introduction of VAT in the country to estimate its...
Persistent link: https://www.econbiz.de/10012866312