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Regular version of the site

109028, Moscow
11 Pokrovsky Boulevard,
Room Т-614
Phone: (495) 628-83-68

email: fes@hse.ru 

First Deputy Dean Sergey Merzlyakov
Deputy Dean for Academic Work Elena Pokatovich
Deputy Dean for Research Dmitry A. Veselov
Deputy Dean for International Affairs Liudmila S. Zasimova
Deputy Dean for Undergraduate Studies Elena Burmistrova
Systemic Financial Risk
In press

Springer Publishing Company, 2024.

Dynamic impact of the US yield curve on green bonds: Navigating through recent crises

Umar Z., Iqbal N., Teplova T. et al.

North American Journal of Economics and Finance. 2024. Vol. 74. No. 1.

Book chapter
Mediating Role of ESG Practices in Determining M&A Premiums in Info-Communications

Grishunin S., Burova E., Suloeva S. et al.

In bk.: 23rd International Conference, NEW2AN 2023, and 16th Conference, ruSMART 2023, Dubai, United Arab Emirates, December 21–22, 2023, Proceedings, Part II. Internet of Things, Smart Spaces, and Next Generation Networks and Systems. LNCS, volume 14543. Springer, 2024. P. 272-283.

Working paper
Operadic structure on Hamiltonian paths and cycles

Lyskov D.

math. arXiv. Cornell University, 2024

Consumer Prices Decrease in Densely Populated Areas

Consumer Prices Decrease in Densely Populated Areas

HSE University economists have proposed a novel approach to modelling monopolistic competition with heterogeneous firms and consumers. It addresses the shortcomings of the traditional model and takes into account the diverse preferences of consumers. The results of collaborative research carried out by Alexander Tarasov from Moscow, his co-authors from HSE University–St Petersburg, together with the Norwegian School of Economics, the University of Pennsylvania, and the Free University of Brussels, have been published in American Economic Journal: Microeconomics, one of the most prestigious journals of the American Economic Association.

The model of monopolistic competition has been a key tool in micro- and macroeconomics, international trade research, and many other fields since the 1970s. It assumes that there are numerous sellers in the market offering similar products with different properties. Sellers compete with each other, while the standard model does not consider consumer preferences. The authors attempted to improve this theory by incorporating differences in consumer demand, considering geographic aspects, product preferences, and ‘popularity.’ With these innovations, firms face a choice: either compete with a large number of firms in a popular niche or sell a less popular product under looser conditions. The authors described it as follows: ‘foxes’ (firms) want to hunt as many ‘chickens’ (consumers) as possible while avoiding encounters with ‘hunters’ (strong competitors).

After constructing the model, the authors tested it on data from Norwegian hair salons, studying the competition among 116 salons in the city of Bergen. The results showed that more productive firms choose more popular niches. Additionally, in more densely populated areas, the equilibrium price decreases. Consumers living closer to the city centre benefit more than residents of remote areas.