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Endogenous Market Structures in International Trade / Ignatius J. Horstmann, James R. Markusen.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Horstmann, Ignatius J.
Contributor:
National Bureau of Economic Research.
Markusen, James R.
Series:
Working Paper Series (National Bureau of Economic Research) no. w3283.
NBER working paper series no. w3283
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1990.
Summary:
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.
Notes:
Print version record
March 1990.

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