This paper studies unidimensional electoral competition between two office-motivated candidates, where one of them enjoys a probabilistic and non-policy advantage over the other. We consider a finite number of voters who have single peaked preferences and whose ideal policies are not known to...

In linear-city models, if firms are allowed (not allowed) to locate outside the linear city, they engage in excessive (insufficient) R&D investments from the normative viewpoint. This implies that the feasible set of locations drastically affects their investments.

This paper analyzes location and price choices of firms and subsequent location choices of consumers in a linear city model when consumers have different perceptions of locations and firms. The study utilizes a continuous logit model to describe consumers’ location and supplier choices. A...

Presenting a novel model of local shopping, the benefit of monopoly provision due to market size effects is explored. Prices are lower, variety and aggregate consumer surplus higher, than local shopping but many shoppers’ utility falls. Policymakers should take care.

We derive conditions under which structural econometric models that rely on numerical computation of equilibria produce consistent and asymptotically normal parameter estimates. The conditions are weaker than those required for the application of the implicit function theory.

Costs necessary to conform with rules and regulations governing market access (i.e. compliance costs) are uncertain prior to export or collection of information which is not cost free for an individual firm. In this paper, we extend the heterogeneous firm model of Melitz to analyze how an...

This paper proposes a homotopy method for implementing counterfactual experiments in empirical models with multiple equilibria. A key assumption is that the equilibrium selection function does not jump discontinuously between equilibria as we continuously change the structural parameters.