Neary, J. Peter; Tharakan, Joe - In: Journal of International Economics 86 (2012) 1, pp. 118-132
This paper endogenizes the extent of intra-sectoral competition in a multi-sectoral general-equilibrium model of oligopoly and trade. Firms choose capacity followed by prices. If the benefits of capacity investment in a given sector are below a threshold level, the sector exhibits Bertrand...