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...

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...

We study competition in markets with significant transport costs and capacity constraints. We compare the cases of price competition and coordination in a theoretical model and find that when firms compete, they more often serve more distant customers that are closer to plants of competitors. By...

This article studies competition in markets with transport costs and capacity constraints. We compare the outcomes of price competition and coordination in a theoretical model and find that when firms compete, they more often serve more distant customers who are closer to the competitor's plant....