We analyze the equilibrium and the optimal resource allocations in a monocentric city undermonopolistic competition. Unlike the constant elasticity of substitution (CES) case, wherethe equilibrium markups are independent of the city size, we present a variable elasticity ofsubstitution (VES)...

Recent theoretical models predict gains from international trade coming from intra-industryreallocations, due to a firm selection effect. In this paper we answer two related questions. First, whatis the magnitude of this selection effect, and how does it compare to that of intra-national trade...

We analyze the effect of collective action vs green/environmentally aware consumers onambient environmental quality and market equilibrium. We consider a model with twotypes of consumers who differ in their willingness-to-pay for a good available in twodifferent environmental qualities, and two...

We derive an R&D-based semi-endogenous growth model where technological progressdepends on the available amount of technological opportunity. Incremental innovationsprovide direct increases in the knowledge stock but they reduce technological opportunityand thus the potential for further...

In this paper, we address the incentives to invest in environmental innovation of enterprisesthat exercise market power in the output market and also buy and sell pollution permits.Differently from the existing literature, using a market approach we explicitly model theinteraction between the...

In this paper we study the integration of production, transportation and storage decisions ina multi plant-distribution center supply chain structure. Multiple plants produce one type ofitem, each of them with different production capacity and costs, and send finished goods tothe distribution...

We consider the single item lot-sizing problem with capacities that are non-decreasing overtime. When the cost function is i) non-speculative or Wagner-Whitin (for instance, constantunit production costs and non-negative unit holding costs), and ii) the production set-upcosts are non-increasing...

We develop a model with two asymmetric countries. Firms choose the number andthe location of plants that they operate. The production of each firm increases whentrade costs fall. The fall also induces multinationals to repatriate their production intoa single country, which is likely to be the...

The aim of this paper is to test the predictions of Sutton's model of independentsubmarkets for the Italian retail banking industry. This industry, in fact, can be viewedas made of a large number of local markets corresponding to different geographicallocations. In order to do that, I first...

This paper examines a three-stage model of divisionalization where, first, two parentfirms create independent units, second, the parent firms allocate cost reduction levelsover these units, and third, the resulting units compete in a Cournot market given theircurrent costs of production. The...