When two countries starting from different quality levels (reflecting different conditions on domestic market demands) open to trade, two possible equilibria arise. In the first, the quality leader maintains its position. In the second, leapfrogging occurs. However, the latter is possible only...

The authors review the argument that incorporating space in economic models has two important consequences: first, the hypothesis of perfect competition becomes untenable, and second, the distinction between private and public goods becomes blurred. They summarize recent work pointing to...

The log it model is usually derived from a discrete choice approach with stoc hastic utilities. It is shown here that the logit demand system may also be derived from the maximization of a deterministic, entropy-type utility. The latter may be interpreted as the preference function of a...