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- W1688333876 abstract "We investigate how differences in set-up costs of various types affect the trade-off between global efficiency and spatial equity and show that the standard assumption of symmetry in fixed costs masks the existence of an interesting effect: the range of available varieties varies depends on the spatial distribution of firms. In such a setting, even when the market outcome leads to excessive agglomeration under symmetric fixed costs, a planner opts for asymmetric fixed costs and more agglomeration. The reason is that the losses induced by more agglomeration are offset by the gains due to additional product variety." @default.
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- W1688333876 date "2005-01-01" @default.
- W1688333876 modified "2023-10-17" @default.
- W1688333876 title "Regional Inequality and Product Variety" @default.
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- W1688333876 doi "https://doi.org/10.2139/ssrn.884367" @default.
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