FUJIWARA, KENJI; SHINOZAKI, TSUYOSHI - In: Australian Economic Papers 49 (2010) 1, pp. 1-12
This paper develops a dynamic game model of reciprocal dumping to reconsider welfare effects of market integration, i.e. reductions in transport costs. We show that welfare under trade is unambiguously less than welfare under autarky for any level of transport costs, which is impossible in...