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We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and … trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are … governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic …
Persistent link: https://www.econbiz.de/10005666820
market performance under monopoly versus oligopoly. If consumers have to choose once where to shop we show that under all …, prices may increase under oligopoly. We check the robustness of these results in various extensions and draw consequences on …
Persistent link: https://www.econbiz.de/10005498025
Flexibility - the ability to react swiftly to others' choices - facilitates collusion by reducing gains from defection before opponents react. Under imperfect monitoring, however, flexibility may also hinder collusion by inducing punishment after too few noisy signals. The combination of these...
Persistent link: https://www.econbiz.de/10011084106
In a spatial economy where oligopolist firms compete in R&D, it is found that geography affects the innovative behaviour of firms. Notably, international differences in market size conduce to endogenous asymmetries between firms given that firms located in the country with more demand have...
Persistent link: https://www.econbiz.de/10005656193
prices to these fluctuations. These facts are analysed within the framework of a multi-product oligopoly model with product …
Persistent link: https://www.econbiz.de/10005661944
This paper examines the rationale for multilateral agreements to limit investment subsidies. The welfare ranking of symmetric multilateral subsidy games is shown to depend on whether or not investment levels are "friendly", raising rival profits in total, and/or strategic complements, raising...
Persistent link: https://www.econbiz.de/10005662067
In an oligopoly trade model where firms engage in R&D, international differences in market size allow for the emergence …
Persistent link: https://www.econbiz.de/10005788976
The recent extensive study of vertical product differentiation models has allowed for the analysis of international trade issues in the presence of country asymmetries in terms of product qualities, technology, costs, market size, and income. In the presence of such asymmetries, national...
Persistent link: https://www.econbiz.de/10005791553
The recent extensive study of vertical product differentiation models has allowed for the analysis of international trade issues in the presence of country asymmetries in terms of product qualities, technology, costs, market size and income. In the presence of such asymmetries, national...
Persistent link: https://www.econbiz.de/10005791757
This paper examines if international trade can reduce total welfare in an international oligopoly with differentiated …
Persistent link: https://www.econbiz.de/10005792025