We investigate the impact of changes in international trade and domestic transport costs on the internalgeography of a domestic economy linked to the rest of the World through a hub. We address that issue bydeveloping two three regions model, namely a version of the Footlose Entrepreneur and a...

In a setting of R&D co-opetition we study, by using an all-pay auction approach, howcollaboration affects strategic decisions during a patent contest, and how the latter influences thepossible collaboration network structures the firms can hope to form. The all pay auctionapproach allows us to...

In this paper we build a quality-augmented version of an economic geography model whereconsumers have heterogenous tastes for a set of manufacturing varieties. We discuss afootloose capital model and a footloose entrepreneur model. We show that firms selling thegoods with higher values select...

In this paper, we provide an explanation of why privatization may attract foreign investorsinterested in entering a regional market. Privatization turns the formerly-public firm into a lessaggressive competitor since profit- maximizing output is lower than the welfare-maximizingone. The drawback...

We develop a model with two asymmetric countries. Firms choose the number andthe location of plants that they operate. The production of each firm increases whentrade costs fall. The fall also induces multinationals to repatriate their production intoa single country, which is likely to be the...