LAMBERTINI, Luca; Rossini, Gianpaolo - Institut de Recherche Économique et Sociale (IRES), … - 1998
We analyse trade in vertically differentiated goods between a rich and a poor country. In autarky two monopolists, selling a single product, operate in two countries which differ only for their per capita income. If trade opens, the firm operating in the poor country exports to the rich, giving...