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EQUILIBRIUM AND OPTIMALITY IN MODELS OF INTERREGIONAL TRADE IN MONOPOLISTIC COMPETITION: A UNIFIED APPROACH
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Keywords

эластичность
iceberg types transport costs
market equilibrium
social optimality
elasticity

How to Cite

Bykadorov I.A., Ismayilova Y.N., Pudova M.V. EQUILIBRIUM AND OPTIMALITY IN MODELS OF INTERREGIONAL TRADE IN MONOPOLISTIC COMPETITION: A UNIFIED APPROACH // Развитие территорий. 2022. Vol. 1, no. 3. P. 21–29. https://doi.org/10.32324/2412-8945-2022-3-21-29

Abstract

The models of interregional trade under monopolistic competition of producers are studied. The situations of market equilibrium and social optimality are considered. it is shown: (1) in a situation of symmetrical market equilibrium, the elasticities of production costs are a convex combination of elasticities of revenue from individual consumption; (2) in a situation of symmetrical social optimality, the elasticities of production costs are a convex combination of elasticities of elementary utilities from individual consumption.
PDF (Russian)