This paper reviews the strategic trade literature in oligopolistic industries beginning with the Brander-Spencer (1984) model of duopolistic international rent shifting. Issues of long-run equilibrium, entry conditions, and empirical estimates of the size of oligopolistic rents in tradable goods...

Two models in which communication costs are a cost to trade are investigated. One model looks at the role of communication in determining the firms' geographic extent in the use of local factor services. Communication costs are modelled as a quasi-public-good network in which communication...

This paper investigates the effects of reciprocal tariff reductions in a two-identical country model of product differentiation. It makes three points. First, the existing results about market structure effects of trade liberalization can easily be replicated from a one-dimensional...