union wage setting. Being interested in the consequences of openness, we show that, in the short-run, trade increases …

market power. Two main results are shown. First, in the presence of buyer power trade liberalization may lead to retail … market concentration. Due to this concentration retail prices may be higher and welfare may be lower in free trade than in … autarky, thus reversing the standard effects of trade liberalization. Second, the pro-competitive effects of trade …

We merge German balance-of-payments and foreign-affiliate-trade statistics to obtain data about trade in commercial …

extract consumer rent. Lower physical trade costs of shipping make Bertrand price competition fiercer in differentiated … can therefore explain why FDI has become more frequent in recent periods in the presence of falling trade costs. Cross …

impact of trade liberalization on employment, welfare, and the distribution of income. In particular, we show that a movement … from autarky to free trade with a symmetric partner country lowers union wage claims and therefore stimulates employment … firm owners remains unaffected, while the distribution of wage income becomes more equal when a country opens up to trade. …