Arbeitspapier

Trade Liberalization May Be Harmful under Endogenous Differentiation

The consequences of free trade are investigated in an international duopoly under horizontal differentiation and convex transportation costs. It is shown that the smaller country may benefit from trade if it is sufficiently small to allow for a significant volume of exports by the domestic firm. On the contrary, the larger country never benefits from trade, since liberalization decreases the domestic firm's profit more than it increases consumer surplus.

Language
Englisch

Bibliographic citation
Series: Quaderni - Working Paper DSE ; No. 262

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Lambertini, Luca
Event
Veröffentlichung
(who)
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
(where)
Bologna
(when)
1996

DOI
doi:10.6092/unibo/amsacta/775
Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Lambertini, Luca
  • Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

Time of origin

  • 1996

Other Objects (12)