This paper tackles the issue of optimum product diversity in an imperfectly competitive market with small of large firms. First, it develops a quadratic utility model of monopolistic competition with horizontal product differentiation which avoids some of the main pitfalls of the S-D-S approach....

Regions can benefit by offering infrastructure services that are differentiated. Competition between regions over potential investors is then less direct, allowing them to realize greater benefits from external investors. The two polar cases of full and incomplete information about investors'...

This paper tackles the issue of optimum product diversity in an impoerfeclty competitive market with small or large firms. First, it develops a quadratic utility model of monopolistic competition with horizontal product differentiation which avoids some of the main pitfalls of the S-D-S...

Extrinsic uncertainty is effective at a competitive equilibrium. This is generic if spot markets are inoperative: the only objects of exchange are assets for the contingent delivery of commodities; and the asset market is incomplete. The structure of payoffs of assets may allow for non-trivial...

In this paper we derive the equilibrium level of redistribution from one mobile factor (say, the rich or capital) to another possibly mobile factor (say, the poor or labour) when regions choose both their inter-regional transfers and redistributive policies non-cooperatively.

In economies of overlapping genenrations, competitive equilibrium allocations and interest rates may be indeterminate. In a world economy with multiple countries, a competitive equilibrium need not satisfy the condition that the balance of payments be in equilibrium. In a stationaryeconomy with...

In this paper, the authors consider a European industry characterized by vertical product differentiation. Using a two-stages model with quality choice made before price competition takes place, the authors show that EU antidumping policy that takes the form of price-undertaking offers a...

Within the framework proposed by Mussa and Rosen (1978)for mod- elling quality di .erentiation,we allow consumers to buy simultane- joint purchase .We show that this option dramatically a .ects price competition:while a unique equilibrium always prevails when consumers are assumed to make...

Much attention has been given to the impact of fiscal competition on the level of public expenditure, but relatively little to the impact on its composition. Using a broadly familiar and reasonably rich model of fiscal competition in the presence of mobile capital, this paper establishes a...