Income polarization and industry concentration (especially in sectors where price competition is supposed to be stiffer) are both generally deemed to be higher in the United States than in the European Union. In this note we provide an interpretation of this evidence by establishing a...

By developing a linear model in a two-country framework of international price competition, we show how the degree of product differentiation and the cross-country distribution of private firms affect the strategic privatization choices made by governments concerned with their own country’s...