?
Do we go shopping downtown or in the 'burbs? Why not both?
Centre for Economic Policy Research
,
2013.
No. DP9604.
Ushchev P., Sloev I., Thisse J.
We combine spatial and monopolistic competition to study market interactions between downtown retailers and an outlying shopping mall. Consumers shop at either marketplace or at both, and buy each variety in volume. The market solution stems from the interplay between the market expansion effect generated by consumers seeking more opportunities, and the competition effect. Firms' profits increase (decrease) with the entry of local competitors when the former (latter) dominates. Downtown retailers swiftly vanish when the mall is large. A predatory but efficient mall need not be regulated, whereas the regulator must restrict the size of a mall accommodating downtown retailers.
Ushchev P., Sloev I., Thisse J., Journal of Urban Economics 2015 Vol. 85 No. 1 P. 1-15
We combine spatial and monopolistic competition to study market interactions between downtown retailers and an outlying shopping mall. Consumers shop at either one marketplace or at both, and buy each variety in volume. The market solution stems from the interplay between the market expansion effect generated by consumers seeking more opportunities, and the competition effect. ...
Added: October 31, 2014
Zhelobodko E. V., Sidorov A., Thisse J., Журнал Новой экономической ассоциации 2013 № 19 С. 10-26
The paper studies a market of horizontally differentiated good under increasing return to scale and exogenous number of firms. Three concepts of equilibria are compared: Cournot, Bertrand and monopolistic competition. Under fairly general assumptions on consumer’s preferences, it is shown that Lerner index is the highest in Cournot case, monopolistic competition provides the lowest one ...
Added: November 14, 2013
Zhelobodko E. V., Kokovin S. G., Parenti M. et al., Econometrica 2012 Vol. 80 No. 6 P. 2765-2784
We propose a model of monopolistic competition with additive preferences and variable marginal costs. Using the concept of "relative love for variety," we provide a full characterization of the free-entry equilibrium. When the relative love for variety increases with individual consumption, the market generates pro-competitive effects. When it decreases, the market mimics anti-competitive behavior. The ...
Added: February 5, 2013
Kichko S., Kokovin S. G., Zhelobodko E. V., / Austrian Institute of Economic Research, Vienna Institute for International Economic Studies, Computing Centre for Economics and Social Sciences. Series FIW "FIW Working Paper". 2013. No. 124.
We develop a two-factor, two-sector trade model of monopolistic competition with variable elasticity of substitution. Firm profit and firm size may increase or decrease with market integration depending on the degree of asymmetry between countries. The country in which capital is relatively abundant is a net exporter of the manufactured good, while both firms' size ...
Added: November 19, 2013
Parenti M., Ushchev P., Thisse J., / Высшая школа экономики. Series WP BRP "Economics/EC". 2016. No. WP BRP 121/EC/2016.
We propose a general model of monopolistic competition which encompasses existing models while being flexible enough to take into account new demand and competition features. Even though preferences need not be additive and/or homothetic, the market outcome is still driven by the sole variable elasticity of substitution. We impose elementary conditions on this function to ...
Added: January 25, 2016
Ushchev P., Zenou Y., / Centre for Economic Policy Research. Series ISSN 0265-8003 "Centre for Economic Policy Research Discussion Paper Series". 2015. No. DP10862.
We develop a product-differentiated model where the product space is a network defined as a set of varieties (nodes) linked by their degrees of substitutabilities (edges). In this network, we also locate consumers so that the location of each consumer (node) corresponds to her "ideal" variety. We show that there exists a unique Nash equilibrium in ...
Added: October 8, 2015
Shapoval S., Гончаренко В. М., Пространственная экономика 2014 № 3 С. 12-25
The article deals with the theory of monopolistic competition under demand uncertainty. The authors consider the economy with labor immobility consisting of the high-tech sector with monopolistic competition and the standard sector with perfect competition. Preferences between sectors are specified by the Cobb – Douglas production function. It is assumed that companies make output
decisions under ...
Added: January 16, 2015
Osharin A., Verbus V. A., / EERC. Series "Labor markets and social policy". 2015. No. 15/03E.
The present paper extends the traditional Dixit and Stiglitz set-up by introducing consumers’ workers’ heterogeneity into a general equilibrium model of monopolistic competition. The model obtains a closed-form solution for a symmetric equilibrium and shows how the market outcome depends on the joint distribution of consumers’/workers’ taste and labor productivities. In contrast to the traditional ...
Added: March 8, 2016
Osharin A., Verbus V. A., / Высшая школа экономики. Series WP BRP "Economics/EC". 2016. No. WP BRP 131/EC/2016.
The paper considers a two-country trade model of monopolistic competition featuring the heterogeneity of consumer preferences both within and across countries. The incorporation of heterogeneity into a traditional monopolistic competition setting is achieved by assuming different elasticities of substitution in the CES utility function for different consumers. The proposed setup expands on the traditional model ...
Added: April 1, 2016
Kichko S., Economics Letters 2017 Vol. 158 P. 58-61
We derive a simple necessary and sufficient condition on preferences for the market outcome to be socially optimal under monopolistic competition with input-output (IO) linkages. Preferences that satisfy this condition are typically non-CES and display pro-competitive effects, although they converge to the CES when IO linkages become negligibly weak. We show that the equilibrium with ...
Added: June 17, 2017
Behrens K., Murata Y., Journal of Urban Economics 2009 No. 65 P. 228-235
Added: November 23, 2013
Tarasov A., The Scandinavian Journal of Economics 2012 Vol. 114 No. 4 P. 1296-1317
There is strong evidence suggesting that different income groups consume different bundles of goods. Hence, trade liberalization can affect welfare inequality via changes in the relative prices of goods consumed by different income groups (the price effect). In this paper, I develop a framework that enables us to explore the role of the price effect ...
Added: October 2, 2015
Alexander Osharin, Advances in Economics and Business 2013 Vol. 1 No. 2 P. 145-149
The paper investigates distributional effects and market structure in a one-sector model of monopolistic competition with heterogeneous consumers. By using the CES utility function depending on consumer’s personal income the paper shows how the equilibrium prices, firm size and number of firms depend upon income distribution and intensity of competition. The proposed model extends the ...
Added: November 13, 2013
Kichko S., Spatial Economic Analysis 2018 Vol. 13 No. 4 P. 387-399
We develop an economic geography framework with positive trade costs in both manufacturing and traditional sectors, mobile skilled workers, and unequal shares of unskilled labour in regions. We show that partial agglomeration always features the home market effect (HME) regardless of whether regions trade only the manufacturing good or both. Moreover, spatial factor mobility is ...
Added: July 3, 2018
Kichko S., Behrens K., Ushchev P., / CESifo Group Munich. Series "CESifo working paper". 2018. No. WP6965.
We develop a general equilibrium model of monopolistic competition with a traded and a nontraded sector. Using a broad class of homothetic preferences—that generate variable markups, display a simple behavior of their elasticity of substitution, and nest the ces as a limiting case— we show that trade liberalization: (i) reduces domestic markups and increases imported ...
Added: April 26, 2018
Using location-based social networks as a novel source of marketing data: the case of shopping malls
Pokryshevskaya E. B., Antipov E. A., Economics Bulletin 2015 Vol. 35 No. 2 P. 1292-1298
In this paper we demonstrate how publicly available data from location-based social networks can be used to model the popularity of different places. Our empirical analysis is based on a sample of 112 shopping malls located in Saint- Petersburg, the second largest city in Russia. Regression models that explain various measures of shopping malls' popularity ...
Added: September 8, 2015
Kichko S., / Высшая школа экономики. Series WP BRP "Economics/EC". 2017.
We derive a simple necessary and sufficient condition on preferences for the market outcome to be socially optimal under monopolistic competition with input-output (IO) linkages. Preferences that satisfy this condition are typically non-CES and display pro-competitive effects, although they converge to the CES when IO linkages become negligibly weak. We show that the equilibrium with ...
Added: June 2, 2017
Behrens K., Murata Y., Journal of International Economics 2012 No. 87 P. 1-17
We present a general equilibrium model of monopolistic competition featuring pro-competitive effects and a competitive limit, and investigate the impact of trade on welfare and efficiency. Contrary to the constant elasticity case, in which all gains from trade are due to product diversity, our model allows for a welfare decomposition between gains from product diversity ...
Added: November 23, 2013
Shapoval S., V.M. Goncharenko, / The Economics Education and Research Consortium. Series WP 14/02E "A. Enterprises and product markets". 2014. No. 14/02E.
Inspired by advances in general equilibrium modelling with monopolistic competition were-consider the problem of the choice of firms under uncertainty, explore it in the framework of general equilibrium modelling, and develop a theory of monopolistic competition under demand uncertainty. We distinguish between two cases of uncertainty. In the first case the uncertainty disappears by the ...
Added: September 28, 2016
Avdasheva S. B., Shastitko A., CPI Antitrust Chronicle 2012 No. 2 P. 2-14
The Law ‘On Trade’, adopted in the Russian Federation at the end of 2009, introduced a set of rules that regulate the terms of contracts between food suppliers and retail chains. The legal requirements are very different to any regulations employed in other countries (including the Grocery Supply Code of Practice ((“GSCOP”) in the United ...
Added: November 7, 2012
Behrens K., Lamorgese A. R., Ottaviano G. I. et al., Journal of International Economics 2009 No. 79 P. 259-265
Added: November 23, 2013
Behrens K., Murata Y., Journal of Economic Theory 2007 No. 136 P. 776-787
Added: November 23, 2013
Pokrovsky D. A., Пространственная экономика 2014 № 2 С. 9-39
This paper is addressed to explanation of differentiation of economics in structure of labor market and income distribution. In order to this aim the author develops a model of endogenous formation of entrepreneurship in economics with heterogeneous agents. The nature of heterogeneity is non-trivial distribution of entrepreneurial abilities across individuals. The impact of form and ...
Added: June 16, 2014
Radionov S., Pospelov I. G., Mathematical Models and Computer Simulations 2014 Vol. 6 No. 5 P. 445-455
Based on the well-known model of monopolistic competition by Melitz with a finite number of firms, we built a number of dynamic models, designed to clarify the dynamic behavior of the original construction. Two variants of the formal Melitz dynamic model are presented, with the quasi-steady state found in one of them. Also, the models ...
Added: September 22, 2014