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This online textbook, provided by R. Preston McAfee (Calfornia Institute of Technology), provides a rigorous coverage of a wide range of microeconomic topics. It's a remarkably comprehensive introductory text.
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A dynamic model of intergovernmental competition for a large plant is presented, when local productivity is uncertain. One firm determines the location of its plant in each period by conducting an auction, soliciting bids from local governments. Equilibrium subsidies from the local governments...
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