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We analyse the welfare effects of policies that intensify product market competition, and the channels through which they operate. Using a circular model of horizontal product differentiation with asymmetric costs, we study the effects of increased price competition on market selection among...
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states with more intense lobbying activities …
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on the top 1% income share are dampened in states with higher lobbying intensity. Finally, from cross-section regressions … less so by incumbent innovators, and it is dampened in states with higher lobbying intensity. Overall, our findings …
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