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Full-Text Articles in Industrial Organization
The Distributional Impacts Of Transportation Networks In China, Lin Ma, Tang Yang
The Distributional Impacts Of Transportation Networks In China, Lin Ma, Tang Yang
Research Collection School Of Economics
This paper evaluates the distributional impacts of transportation networks in China.We show that the quality of roads and railroads vary substantially over time and space, and ignoring these variations biases the estimates of travel time. To account for quality differences, we construct a new panel dataset and approximate quality using the design speed of roads and railroads that varies by vintage, class, and terrain at the pixel level. We then build a dynamic spatial general equilibrium model that allows for multiple modes and routes of transportation and forward-looking migration decision.We find aggregate welfare gain and less spatial income inequality led …
Number Of Firms And Price Competition, Kyle Bagwell, Gea Myoung Lee
Number Of Firms And Price Competition, Kyle Bagwell, Gea Myoung Lee
Research Collection School Of Economics
The relationship between the number of firms and price competition is a central issue in economics. To explore this relationship, we modify Varianís (1980) model and assume that firms are privately informed about their costs of production. Allowing that the support of possible cost types may be large, we show that an increase in the number of firms induces lower (higher) prices for lower-cost (highercost) firms. We also characterize the pricing distribution as the number of firms approaches infinity, finding that the equilibrium pricing function converges to the monopoly pricing function for all but the lowest possible cost type. If …