Motta, Massimo; Thisse, Jacques-Francois; Cabrales, Antonio - In: International Economic Review 38 (1997) 4, pp. 809-24
When two countries starting from different quality levels (reflecting different conditions on domestic market demands) open to trade, two possible equilibria arise. In the first, the quality leader maintains its position. In the second, leapfrogging occurs. However, the latter is possible only...