This paper develops a super game model of collusion between price-setting oligopolists located in different markets separated by trade costs. The firms produce a homogenous good and sustain collusion based on territorial allocation of markets. We first show, in a more general framework than some...

Despite more than a quarter century of intense research into the phenomenon of intra-industry trade (the import and export of goods belonging to the same industry, hereafter abbreviated as IIT), several important puzzles remain: the existence of IIT even at highly disaggregated levels of...

For most developed countries, "opening up" of the economy has meant the reduction of non-prohibitive tariffs and the easing or abolition of quantitative restrictions. For manydeveloping countries and economies in transition, however, it often requires the relaxation of autarkic policies such as...