Product Selection, Fixed Costs, and Monopolistic Competition

Spence, Michael

doi:10.2307/2297319

Cited by 1,109 publications

(543 citation statements)

References 5 publications

Supporting

Mentioning

487

Contrasting

Unclassified

Order By: Relevance

“…Models with internal increasing returns build on theories of the firm and its market and commonly employ the formalisation of monopolistic competition suggested by Spence (1976) and Dixit and increasing returns imply agglomeration. In a related model, Krugman (1991) demonstrates that agglomeration will result even when transportation costs are small, if most workers are mobile.…”

Section: Introductionmentioning

confidence: 99%

Is there a limit to agglomeration? Evidence from productivity of Dutch firms

Rizov¹,

Oskam²,

Walsh³

2012

Regional Science and Urban Economics

View full text Add to dashboard Cite

We compute aggregate productivity of three categories of regions, classified by level of urbanization and density of economic activity in the Netherlands, from firm-specific total factor productivity (TFP) measures. TFP measures are estimated by a semi-parametric algorithm, within 2-digit industries, covering agriculture, manufacturing, construction, trade and services, using AMADEUS data over the period [1997][1998][1999][2000][2001][2002][2003][2004][2005][2006]. We analyse the productivity differentials across urbanization categories by decomposing them into industry productivity effect and industry composition effect. Our analysis indicates that there is non-linear net effect of agglomeration on productivity growth but in levels agglomeration is associated with higher productivity.

show abstract

Section: Introductionmentioning

confidence: 99%

Is there a limit to agglomeration? Evidence from productivity of Dutch firms

Rizov¹,

Oskam²,

Walsh³

2012

Regional Science and Urban Economics

View full text Add to dashboard Cite

show abstract

“…with a = 1 and b = in the case (18) and b = r in the case of (19): Notice that if = r, the expected value for the estimate of b is zero. We present our results in Tables 1 and 1b.…”

Section: Ces Preferencesmentioning

confidence: 99%

“…To simplify the model we assume, as did Spence (1976), that when a …rm maximizes pro…ts it takes m as given. The …rst order condition of pro…t maximization…”

Section: The Linear-ces Modelmentioning

confidence: 99%

Interpreting Markups in Spanish Manufacturing: The Exponential Model

Corchón

Moreno²

2016

Equilibrium Theory for Cournot Oligopolies and Related Games

View full text Add to dashboard Cite

In this paper we attempt to rationalize markups in a sample of Spanish manufacturing by assuming a representative consumer, pro…t-maximizing …rms and constant returns to scale. We …nd that the standard forms of demand (CES and linear) do not provide a good explanation of markups.In contrast, a model where the representative consumer has an exponential utilty function yields results that match data more closely.We thank Carmen Beviá, Luis Cabral, Natalia Fabra, José María Sastre, Galina Zudenkova and the participants in a seminar at Carlos III University, especially Cesar Alonso and Paco Marhuenda, for very helpful comments, and Diego Rodríguez for programming support and data. The …rst author acknowledges …nancial support from ECO2008-02738/ECON.The second author acknowledges …nancial support from SEJ2007-66520/ECON.

show abstract

“…However, if they are (strategic) complements to lending, banks' main source of income, then banks are the more likely suppliers (see e.g. Spence (1976) for a general treatment). The results reveal that the first two channels which relate to information asymmetries are somewhat more likely than those related to direct lending or organising 1 A related literature stresses the benefits of general financial development.…”

Section: How Do Banks Intermediate Foreign Direct Investment?mentioning

confidence: 99%

Home Bank Intermediation of Foreign Direct Investment

Poelhekke

2011

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

show abstract

Product Selection, Fixed Costs, and Monopolistic Competition

Cited by 1,109 publications

References 5 publications

Is there a limit to agglomeration? Evidence from productivity of Dutch firms

Is there a limit to agglomeration? Evidence from productivity of Dutch firms

Interpreting Markups in Spanish Manufacturing: The Exponential Model

Home Bank Intermediation of Foreign Direct Investment

Contact Info

Product

Resources

About