Endogenous market structures in international trade
1990
Horstmann, Ignatius J. | Markusen, James R.
Almost all of the large literature on international trade with imperfect competition assumes exogenous market structures. The purpose of this paper is to develop a simple model that generates alternative market structures as Nash equilibria for different parameterizations of the basic model. Familiar configurations such as a duopoly competing in exports or a single multinational producing in both markets arise as special cases. Small tax-policy changes can produce large welfare effects as the equilibrium market structure shifts, implying discontinuous jumps in prices, quantities, and profits.
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Bibliographic information
Publisher National Bureau of Economic Research, | Cambridge, MA : National Bureau of Economic Research, [1990]
This bibliographic record has been provided by National Agricultural Library