Trade liberalization in a differentiated duopoly reconsidered

Constructing a model of differentiated Cournot duopoly, we consider welfare effects of trade liberalization (i.e. reductions in transport costs). We examine both multilateral trade (i.e. the firms in both countries export bilaterally) and unilateral trade, under which foreign entry is possible but the home firm cannot export. Some new results on trade gains under differentiated oligopoly are proved and their implications are discussed.

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Year of publication:	2009
Authors:	Fujiwara, Kenji
Published in:	Research in Economics. - Elsevier, ISSN 1090-9443. - Vol. 63.2009, 3, p. 165-171
Publisher:	Elsevier
Keywords:	Gains from trade Oligopoly Product differentiation

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008565553