This paper presents a simple model for analysing the contribution of investments in physical and institutional infrastructure to the transition process. In addition to the direct cost savings, infrastructure investment generates important indirect effects, or transition impacts. The model shows...

This paper investigates the impacts of transportation infrastructure expansions on firm productivity and productivity gaps between the private and state sectors in China. Heterogeneous firms compete strategically a la Cournot in a multi-region model of internal trade. We show that lower...

We develop an oligopoly model in which firms facing unionised domestic labor markets choose between producing an intermediate good in-house and outsourcing it to a nonunionised foreign supplier that makes a relationship-specific investment in developing the intermediate. The paper sheds light on...

Both horizontal and vertical innovations are studied in this paper, using monopolistic and oligopolistic competition models with multiproduct firms. We consider a two-stage game. In the first stage, all firms simultaneously choose their own number of products. In the second stage, firms make...

The monopolistic competition model is suitable for markets with a large group of relatively small firms. However, it hardly describes oligopoly markets where several multi-national companies dominate the markets and each giant firm produces a large number of products. Such a market structure...