Cordella, Tito; Grilo, Isabel - C.E.P.R. Discussion Papers - 1998
In this paper, we adopt the vertical differentiation duopoly framework to give a full description of firms’ relocation … yields the relocation of the whole industry, autarchy is strictly better, in welfare terms, than ‘globalization’. It is only … when relocation is a dominant strategy for one (and only one) of the firms, that ‘globalization’ may be unambiguously …