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Abstract We examine the incentives of free trade agreement (FTA) formation between two countries under endogenous market structure with leaders and followers. We demonstrate that establishing a FTA is neither an equilibrium outcome nor socially optimal when consumer demand and fixed cost are...
Abstract This paper overviews the research on social decision criteria under uncertainty and attempts to provide insights for future directions.
Abstract We consider the single object auction model with allocative externalities in a private valuation and quasi-linear setting. We model externalities by assuming that every agent has a private valuation (for the object) and a strict ranking of other agents. The utility for an agent when...
Abstract This study considers a school choice problem with general feasibility constraints. Each student belongs to a grade; and 2 students belonging to the same grade are symmetric, whereas those belonging to different grades can be asymmetric with respect to the feasibility constraint of a...
Abstract This study examines the environmental policy mix of tradable emission permits and emission taxes in a duopoly model with a consumer-friendly firm. We analyse the interplay of the two policies and the welfare consequences in the presence of excess burden of taxation. We show that an...
Abstract To explain the links between demographics and economic integration, we construct a new economic geography model with endogenous fertility. Labour mobility across regions results in more people flowing into highly populated regions, but lowers fertility rates there. Finally, regions are...
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