We show how a large country’s entrance on world markets can lead to lower and less quality diversity available to consumers rather than more. In our model, autarky quality is directly proportional to the willingness to pay for quality and home market size, and inversely proportional to the...

[eng] Location of activities : a two-sectors model with transportation costs. P. Krugman is arguing that a reduction of manufactured goods transportation costs favors concentration of industrial activity. In an economy with two sectors - the « agricultural » one being characterized by perfect...

We examine the design of national emission taxes in an international trade setting with imperfect competition and trade costs. The main point of the paper is that there can exist a consistency problem with respect to tax policy in a setting where trade costs are positive. In particular, when...