Multiplant strategy under core-periphery structure∗
نویسنده
چکیده
This paper examines the stable outcomes of organization choice between single-plant and multi-plant under asymmetric two regions. A typical implicit assumption on monopolistic competition models for trade and economic geography is that firms can produce and sell only at one place. This paper allows endogenous determination of the number of plants in a new economic geography model. In particular, we explicitly considers the firms’ trade-off between larger economies of scale under single plant configuration and the saving in interregional transport costs under multi-plant configuration, together with its consequence on the interregional population distribution. JEL Classification : D21, F12, L23, R12,
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