Noblet, Sandrine; Belgodere, Antoine - 2010 - Preliminary version
for this puzzle. They explain that an improvement in transport technology can increase the transport costs, because it … transport cost and trade cost. ii) this phenomenon is due to contract incompleteness. However, the mechanism that we underline … is quite different: in our model, based on a Dixit-Stiglitz increasing return to scale technology, a fall in transport …