Feenstra and Ma (2008) develop a monopolistic competition model where firms choose their optimal product scope by balancing the profits from a new variety against the costs of cannibalizing sales of existing varieties. While more productive firms always have a higher market share, there is no...

Die Befragung Lüneburger Handwerksbetriebe, die im Rahmen eines Projektes zur Regulierung auf dem deutschen Handwerksmarkt in Zusammenarbeit mit der Kreishandwerkerschaft Lüneburg durchgeführt wurde, soll Auswirkungen der Anfang 2004 erfolgten Handwerksreform erfassen. Dabei liegt der...

This paper uses an oligopoly model with heterogeneous firms to examine how an industry adjusts to rising import competition. The model predicts that in the short run the least efficient firms in the industry become inactive, surviving firms face a fall in output, mark-ups and profits, and the...