Huang, Yo-Yi; Huang, Deng-Shing - In: International Review of Economics & Finance 34 (2014) C, pp. 175-189
In a two-country monopolistic competition general equilibrium model, we consider two types of firms: big with higher fixed cost but lower marginal cost, and small with lower fixed cost but with high marginal cost. We prove that free trade may not always benefit the big-country and/or big firms....