Bykadorov, Igor; Gorn, Alexey; Kokovin, Sergey; … - In: Economics Letters 129 (2015) C, pp. 35-38
Examining a standard monopolistic competition model with unspecified utility/cost functions, we find necessary and sufficient conditions on their elasticities for welfare losses to arise from trade or market expansion. Two numerical examples explain the losses (under unrealistic elasticities).