Lahiri, Sajal; Ono, Yoshiyasu - In: Contemporary and emerging issues in trade theory and policy, (pp. 367-377). 2008
We develop a 2×2×2 model of international trade in which one of the sectors is oligopolistic. The oligopolistic sector consists of a given number of a priori identical firms belonging to one of the two countries, but some deciding to locate in the other country so as to realize higher profits....