The purpose on this paper is twofold. First, we present an alternative model of agglomeration and trade that displays the main features of the recent economic geography literature while allowing for the derivation of analytical results by means of simple algebra. Second, we show how this...

We study an endogenous business cycle model with Cournotian monopolistic competition and an endogenous number of firms in each sector. Our model is a simple general equilibrium macroeconomic model introducing overlapping generations both of consumers and firms. Firms strategically decide on...

In this paper, the authors consider a European industry characterized by vertical product differentiation. Using a two-stages model with quality choice made before price competition takes place, the authors show that EU antidumping policy that takes the form of price-undertaking offers a...

Within the framework proposed by Mussa and Rosen (1978)for mod- elling quality di .erentiation,we allow consumers to buy simultane- joint purchase .We show that this option dramatically a .ects price competition:while a unique equilibrium always prevails when consumers are assumed to make...

Much attention has been given to the impact of fiscal competition on the level of public expenditure, but relatively little to the impact on its composition. Using a broadly familiar and reasonably rich model of fiscal competition in the presence of mobile capital, this paper establishes a...

We analyze the problem of competitive mechanism design within the context of a model of product differentiated oligopoly. In an oligopoly setting, participation by an agent in any one firm's catalog is endogenously determined. This facts leads naturally to a modification of the classical notion...

Within this framework of pure redistriubtion (dividing one unit of a homogeneous good among identical individuals), the paper analyses the redistributions that arise from Downsian two-party electoral competition. It appears that the strategic behavior of vote-maximizing parties lead them to...

This contribution investigates the effectiveness and welfare implications of fiscal policies in a context of multilateral trade, when traders behave strategically. The present approach deals simultaneously with two aspects of fiscal policies: collecting resources for redistributive purposes and...

This note analyzes the effect of product complementarity in a bilateral oligopoly. We show that offers of traders on the two sides of the market are strategic complements (substitutes) if and only if the two goods are substitutes (complements). The outcome of the bilateral oligopoly game...

Both product differentiation through quality and capacity commitment have been shown to relax price competition. However, they have not been considered simultaneously. To this end we consider a three stage game where firms choose quality then commit to capacity and finally compete in price.