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Persistent link: https://www.econbiz.de/10004329029
The New Economic Geography literature allows detailed analysis of the factors that determine the location decisions of firms in integrated markets. However, the competitive process is modelled in a rather rudimentary way, and the empirical evidence has usually been obtained from reduced-form...
Persistent link: https://www.econbiz.de/10005022377
Persistent link: https://www.econbiz.de/10009401649
available varieties among consumers can lead to the agglomeration of commercial activities. Here, the source of agglomeration is … matching. By constructing a two-region model, we show that two distribution patterns – segregation and full agglomeration – may … agglomeration – may emerge when consumers pay different amounts of transport cost. …
Persistent link: https://www.econbiz.de/10010666188
I introduce non-perfect substitutability between products into the spatial Bertrand model. I show that if goods are complements, the firms always agglomerate. If goods are substitutes, the firms agglomerate if the transportation costs are not too high. Copyright Springer-Verlag Berlin Heidelberg...
Persistent link: https://www.econbiz.de/10010681335
One of the most notable changes in the U.S. retail market over the past twenty years has been the rise of Big Box stores, retail chains characterized by physically large stores selling a wide range of consumer goods at discount prices. A growing literature has examined the impacts of Big Box...
Persistent link: https://www.econbiz.de/10011075128
The cost of hospital care depends on the quality of the service, on the personal characteristics of the patient, on the effort of the medical staff and on information asymmetry. In this article the cost minimizing properties of alternative payment systems will be discussed in a context where...
Persistent link: https://www.econbiz.de/10005711028
Sticky nominal prices represent a cornerstone of many macroeconomic models. The effects of price adjustment on strategic firm interaction and the resulting price series implications are less established. This paper develops a spatial economy to analyze these interactions. In the two period...
Persistent link: https://www.econbiz.de/10005787722
Market size and transport costs are important ingredients of international trade. We propose to look at these issues from a different perspective. Using a Hotelling duopoly model with quadratic transport costs, we analyse the welfare effects of international trade between two countries that...
Persistent link: https://www.econbiz.de/10005791793
Incorporating space in economic models has two important consequences. First, the hypothesis of perfect competition becomes untenable, and second, the distinction between private and public goods becomes blurred. We review arguments that lead to these conclusions and summarize recent work...
Persistent link: https://www.econbiz.de/10005791949