This paper examines if international trade can reduce total welfare in an international oligopoly with differentiated … goods. We show that welfare is a U-shaped function in the transport cost as long as trade occurs in equilibrium. With a … Cournot duopoly trade can reduce welfare compared to autarchy for any degree of product differentiation. Under Bertrand …

This paper examines if international trade can reduce total welfare in an international oligopoly with differentiated … goods. We show that welfare is a U-shaped function in the transport cost as long as trade occurs in equilibrium. With a … Cournot duopoly trade can reduce welfare compared to autarchy for any degree of product differentiation. Under Bertrand …

Starting with Krugman (1980), much literature has analyzed how trade liberalization affects the economy based on the … notion that trade is motivated by consumer's love of variety. In this paper, I augment these preferences by the determinants … heterogeneous tastes for attributes. Allowing for international trade, the model predicts a within-industry home market effect, i …

product attribute dimension that significantly drive net trade patterns and reduce the volume of trade. Further it is shown … trade volume to liberalization as it took time for each country's industry structure to adapt to the demand structure of the … common market. To rationalize such trade patterns, a structural model of demand featuring consumers with homothetic …

It has become common to measure the quality of exports using their unit export value (UEV). Applications of this method … include studies of intra-industry trade (IIT) and analyses of industrial "competitiveness". This literature seems to assume … that export quality and export price (the most natural interpretation of UEV) are not merely correlated but that they …

This paper deploys a dynamic extension of the Melitz (2003) model to generate predictions on export market exit and … productivity not only increases the likelihood of exporting, but also the chances of firm survival and continued export market … engagements. We relate these predictions to the empirical stylized facts of export market exit and firm survival based on Danish …

We examine an export game where two firms (home and foreign), located in two differentcountries, produce vertically … involvesintra-industry trade where the foreign producer manufactures a good of higher quality thanthe domestic firm. This …

We study the gains from trade in a model with endogenously variable markups. We show that the pro-competitive gains … from trade are large if the economy is characterized by (i) extensive misallocation, i.e., large inefficiencies associated … the model consistent with this data thus predict large pro-competitive gains from trade, much larger than those in …

the simplest specifications possible, namely a symmetric two-country intra-industry trade model with fixed export costs …Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm …