Selection Effects with Heterogeneous Firms.
We provide a general characterization of which firms will select alternative ways of serving a market. If and only if firms’ maximum profits are supermodular in production and market-access costs, more efficient firms will select into the activity with lower market-access costs. Our result applies...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
| Published: |
Department of Economics (University of Oxford)
2011
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