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I begin by fitting traditional gravity equations to document that regional flows in the Brazilian cement industry exhibit gravity-like structure, with cement trade decaying sharply in distance traveled. I then show that this large distance effect owes to firms' strategic behavior over and above...
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This paper argues that large distance and border effects on trade flows in some industries might be a result of the (explicitly or tacitly) collusive division of geographic markets. A simple spatial oligopoly setting demonstrates how goods can travel shorter distances, or trade between regions...
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We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....
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In this paper, we review competitive location models. Retail facilities operate in a competitive environment with an objective of profit and market share maximization. These facilities are different from each other in their overall attractiveness to consumers. The basic problem is the optimal...
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