Peaks and troughs in the spatial distributions of population, employment and wealth are a universal phenomenon in search of a general theory. Such spatial imbalances have two possible explanations. In the first one, uneven economic development can be seen as the result of the uneven distribution...

In this paper we analyze price competition between firms established in different countries when demand is sensitive to national biases. The intensity of this bias varies across consumers. In this context, trade arises because of the dispersion of consumers' perception of the foreign good; when...

We investigate a spatial duopoly in which the firms simultaneously select locations at the beginning of time; once chosen, the locations are fixed forever, but the firms will choose prices in each of a countably infinite succession of time periods. We are interested in equilibrium behavior when...

This paper focuses on two distinct facets of globalization: the decrease in the trade costs of goods and the decline of communication costs between headquarters and production facilities within firms. When the unskilled have about the same wage in the two regions, the decrease of these costs...