1. Reason if the equilibrium condition p^c = p^s = w^l should hold when more high-skilled L agglomerate into one region. That is, why the wage rate for low-skilled L will not be affected by agglomeration of high-skilled L? (With emperical evidence?)
2. Study Krugman & Venables (1995) very carefully, esp. regarding the wage rates.
3. Thisse wants me to rewrite De Vaal & Van den Berg (1999) with linear utility and quadratic transportation costs???!!! (I think there's some misunderstanding here...)
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