We study road supply by competing firms between a single origin and destination. In previous studies, firms simultaneously set their tolls and capacities while taking the actions of the others as given in a Nash fashion. Then, under some widely used technical assumptions, firms set the same...

We analyze the effects of consumers' limited attention on welfare in a model of horizontal product differentiation. We present a novel approach of modeling limited attention: an attention radius. Each consumer only notices goods that are within her attention radius, i.e., goods that are...

This paper demonstrates that a pollution tax with a fixed cost component may lead, by itself, to segregation between clean and dirty firms without heterogeneous preferences or increasing returns. We construct a simple model with two locations and two industries (clean and dirty) where pollution...

We measure country welfare by an index number calculated from welfare components like GDP per capita and expected length of life. We rank countries from high to low welfare using such estimated welfare indices. In such calculation the chosen welfare components, the procedures used to normalize...

The purpose of the presentation is to analyze the labor market effects of a congestion charge when commuters have continuously distributed value of time. Since a congestion charge raises the cost of commuting to work, it can decrease employment at the extensive margin in a similar way as an...