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prices increase and consumer's surplus possibly decrease. We first derive the price and the consumer's surplus of a monopoly … entry increase in price may outweight the gains from extra variety and make consumers worse off. …
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This paper investigates the impact of free trade on welfare in a two-country world modelled as an international Hotelling duopoly with quadratic transport costs and asymmetric countries, where a negative environmental externality is associated with the consumption of the good produced in the...
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