Constructing a two-country oligopolistic model with product differentiation, this paper revisits welfare effects of free trade. The hybrid of procompetitive and variety expansion effects means that trade liberalization has definite benefits for the consumer, while it is contingent whether it is...

This paper develops a model of an export oligopoly to examine the welfare effects of an export tax reduction and a production tax increase that makes the foreign country no-worse off. Whether or not entry into the oligopolistic industry is free, the proposed policy reform is shown to reduce...

This paper develops a model of an export oligopoly to examine the welfare effects of an export tax reduction and a production tax increase that makes the foreign country no-worse off. Whether or not entry into the oligopolistic industry is free, the proposed policy reform is shown to reduce...

This paper develops a two-country general equilibrium model to examine the welfare effect of tariff-tax reforms that fix the world price. We show that this reform improves welfare if an origin tax is adjusted, but that it reduces welfare if a destination tax is used. Moreover, this result is...

This paper explores some implications of the comparison between feedback Nash and Stackelberg equilibria for growth and welfare in a ‘voracity’ model. We show that, as compared to the Nash equilibrium, the Stackelberg equilibrium involves a lower growth rate, while it leaves both the leaders...

This paper, in a two-country duopoly model, compares destination- and origin-based commodity taxes in a context of a unilateral tariff-tax reform that fixes the world price and foreign welfare. We find that the proposed reform reduces domestic welfare, and hence is strictly Pareto-deteriorating...

Constructing a duopoly model with non-constant marginal costs and a strict Pareto criterion, this paper examines welfare effects of world-price-fixing tariff reductions accompanied by adjustments of a domestic tax. If a destination-based consumption tax is used, this reform achieves a strict...

A two-agent model of international trade with oligopoly and increasing returns is proposed to address why there have been persistent anti-trade-liberalization movements. It is shown that all of a country's residents lose from trade under certain conditions on the cross-country cost structure.

Constructing a model of polluting oligopoly with product differentiation, we consider how product differentiation, together with the presence and absence of free entry, affects optimal pollution tax/subsidy policies. The sign of the short- and long-run optimal pollution taxes are highly...