This paper examines the phenomenon of intraindustry trade under the condition of firm collusion. It is shown that with homogeneous goods, no collusive intraindustry trade can occur. But if the products are differentiated, firms will achieve their joint monopoly profits by exporting to each...

This paper reexamines the market structure problem in the strategic trade policy literature. It is shown that rent sharing between the home union and the home firms raises total home industry rents regardless of whether the international duopoly is Cournot or Bertrand. Furthermore, home welfare...