International Research Seminar "General equilibrium and optimality in monopolistic competition theory". Presentation by John Morrow.

On December 27, 2012, at 12:00 MSSE was held a public research seminar. Report on the theme "Productivity As If Space Mattered: An Application to Factor Markets Across China" by John Morrow (London School of Economics).

S.Dhingra

On December 27, 2012, 12:00-14:00.
Public research seminar.
Swati Dhingra (London School of Economics). "Trading Away Wide Brands for Cheap Brands".

Firms face competing needs to expand product variety and reduce production costs. Access to larger markets enables innovation to reduce costs. Although firm scale increases, foreign competition reduces markups. Firms' ability to recapture lost markups depends on the interplay between within-firm competition and across-firm competition. Narrowing product variety eases within-firm competition but lowers market share. I provide a theory detailing the impact of trade policy on product and process innovation. Unbundling innovation provides new insights into welfare gains and innovation policy. Product innovation increases welfare beyond standard gains from trade. The relative returns to innovation policy change with trade liberalization.

Download the presentation:

Swati Dhingra. "Trading Away Wide Brands for Cheap Brands"

Venue: 47, pr. Rimskogo-Korsakova, St. Petersburg (building of the bank "Saint Petersburg", conference-hall).

Web-page of the International research seminars "General equilibrium and optimality in monopolistic competition theory"...