Guha, Ashok S.; Guha, Brishti - In: Review of International Economics 17 (2009) 5, pp. 1053-1065
Equilibrium in international trade with increasing returns in infrastructure depends on whether the infrastructure provider is "naïve" or sophisticated. A monopolist produces infrastructure under decreasing cost using fixed equipment. Unlike similar work, we derive a <i>unique</i> closed-economy...