In this paper we argue that two important causes of welfare losses in oligopolistic markets have been neglected. We show that in models where location is endogenous, welfare losses arising from wrong locations or from lack of market coverage may be substantial despite firms competing in prices....

In general equilibrium theory for private good economies, possible discontinuities in budget correspondences create obstacles to decentralizing Pareto efficient allocations, as well as to existence of Walrasian equilibrium with gains from trade. Then McKenzie's (1957) notion of compensated...

We study consumer surplus in a single market when (a) there is a lower bound in the consumption of the outside good and (b) the weights in the social welfare function given to consumers and firms are different. We assume quasilinear utility. When the lower bound constraint on the consumption of...