participating in the contests when unions are present. We then study the effects of market integration in a two-country setup …

efficient supply of differentiated goods. All these results rest on the assumption of an efficient land market. This suggests … competitive market for cities to work might be hard to achieve. First, the instrument menu available to developers is likely to be … constrained. Second, nonreplicability and indivisibility may give rise to additional difficulties. In either case, the market …