This article adds technology choice to a free-entry Cournot model with linear demand and constant marginal costs. Firms can choose from a discrete set of technologies. This simple framework yields non-existence of equilibrium, existence of multiple equilibria and equilibria in which ex-ante identical ̄rms choose di®erent technologies as possible outcomes. I provide a full characterization of th...

JEL Classification: K42, L13, O17.

This paper formulates a two-country economic geography model of trade and the environment, in which “entrepreneurs” who own capital are internationally mobile under monopolistic competition. When the environmental policy is predetermined, the model follows the traditional economic geography prediction where industries agglomerate in one country above certain level of trade openness. Moreover, w...

JEL Classification Numbers: G100, G120

Literature from several phases of the career of Masahisa Fujita is surveyed chronologically, with a view toward future contributions in these areas. First we address the economic structure of the interior of a city with mobile consumers, adding production. Next we provide a critical discussion of the New Economic Geography, in particular distinguishing between recent approaches employing two re...

In the debate on globalisation and wage inequality HeckscherOhlin theory has featured prominently. However, a neglected mechanism by which globalisation affects labour market outcomes is through the increased tradability of producer services. By integrating elements of Heckscher-Ohlin theory, the economic geography literature and the literature on producer services linkages, we show that the im...

JEL classification: C51 C52 G11

This paper argues that a geographical perspectie is fundamental to understanding comparative economic development in the context of globalization. Central to this view is the role of agglomeration in productivity performance; size and location matter. The tools of the new economic geography are used to illuminate important epidsodes when the relative position of major eeconmies radically change...

This paper provides an economic explanation of the frequent rule changes in the Formula One (F1) motor racing series. In a two-stage model, the FIA (as the organizer of the F1) rst decides whether to change the rules or not, and then the racing teams compete in a contest. It turns out that a rule change reduces the teams' performances, but also improves competitive balance between the teams. Th...

In an e¤ort to stimulate more attractive football, the international football association FIFA, has introduced several new rules over the past decades. One of the most recent rule change is the introduction of the ”sudden death” or ”golden goal” rule for games going into overtime. This paper analyses under which conditions, if any, the introduction of the sudden death rule improves the attracti...