IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v121y2013i1p101-104.html
   My bibliography  Save this article

Habit formation and strategic interactions: A new gain from trade?

Author

Listed:
  • Vatan, Antoine

Abstract

A two-period duopoly model of trade with habit formation displays a “pre-entry pro-competitive effect” and the standard pro-competitive effect once trade is effective. Both effects are driven in a different way by transport cost. A trade liberalization affects ambiguously welfare.

Suggested Citation

  • Vatan, Antoine, 2013. "Habit formation and strategic interactions: A new gain from trade?," Economics Letters, Elsevier, vol. 121(1), pages 101-104.
    • Handle: RePEc:eee:ecolet:v:121:y:2013:i:1:p:101-104
    DOI: 10.1016/j.econlet.2013.07.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176513003352
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2013.07.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Driskill, Robert & McCafferty, Stephen, 2001. "Monopoly and Oligopoly Provision of Addictive Goods," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(1), pages 43-72, February.
    2. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
    3. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    4. Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Franc Klaassen & Rutger Teulings, 2015. "Untangling Fixed Effects and Constant Regressors," Tinbergen Institute Discussion Papers 15-137/VI, Tinbergen Institute.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bossi, Luca & Calcott, Paul & Petkov, Vladimir, 2013. "Optimal tax rules and addictive consumption," Journal of Economic Dynamics and Control, Elsevier, vol. 37(5), pages 984-1000.
    2. Jan Boone & Joel Shapiro, 2006. "Selling to consumers with endogenous types," Economics Working Papers 992, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Dragone, Davide & Raggi, Davide, 2021. "Resolving the milk addiction paradox," Journal of Health Economics, Elsevier, vol. 77(C).
    4. Toru Kikuchi, 2007. "Switching costs and the impact of trade liberalization," Economics Bulletin, AccessEcon, vol. 6(6), pages 1-7.
    5. Luca Bossi, 2007. "Per Unit Versus As Valorem Taxes Under Dynamic Monopoly," Working Papers 0703, University of Miami, Department of Economics.
    6. Luca Bossi & Vladimir Petkov, 2007. "Habits, Market Power, and Policy Selection," Working Papers 0702, University of Miami, Department of Economics.
    7. Maltz, Amnon, 2016. "Experience based dynamic choice: A revealed preference approach," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 1-13.
    8. Bossi, Luca & Calcott, Paul & Petkov, Vladimir, 2011. "Optimal Tax Rules for Addictive Consumption," Working Paper Series 18595, Victoria University of Wellington, School of Economics and Finance.
    9. Toru Kikuchi, 2009. "Switching Costs And The Foreign Firm'S Entry," Manchester School, University of Manchester, vol. 77(3), pages 366-372, June.
    10. Bossi, Luca & Calcott, Paul & Petkov, Vladimir, 2011. "Optimal Tax Rules for Addictive Consumption," Working Paper Series 1673, Victoria University of Wellington, School of Economics and Finance.
    11. Luca Bossi & Vladimir Petkov, 2013. "Monopoly, Time Consistency, and Dynamic Demands," Journal of Industry, Competition and Trade, Springer, vol. 13(3), pages 339-359, September.
    12. Curtis Eberwein & Ted To, 2018. "Intertemporal Non-separability and Dynamic Oligopoly," Dynamic Games and Applications, Springer, vol. 8(2), pages 232-253, June.
    13. Ziggy MacDonald & Stephen Pudney, 2001. "Illicit drug use and labour market achievement: evidence from the UK," Applied Economics, Taylor & Francis Journals, vol. 33(13), pages 1655-1668.
    14. Abel Brodeur, 2012. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," Working Papers halshs-00664269, HAL.
    15. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, University of Gothenburg, Department of Economics.
    16. Jose Apesteguia & Miguel Ballester, 2009. "A theory of reference-dependent behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 427-455, September.
    17. Nan Yang & Yong Long Lim, 2018. "Temporary Incentives Change Daily Routines: Evidence from a Field Experiment on Singapore’s Subways," Management Science, INFORMS, vol. 64(7), pages 3365-3379, July.
    18. Kareen Rozen, 2010. "Foundations of Intrinsic Habit Formation," Econometrica, Econometric Society, vol. 78(4), pages 1341-1373, July.
    19. Humphreys, Brad & Ruseski, Jane & Zhou, Li, 2015. "Physical Activity, Present Bias, and Habit Formation: Theory and Evidence from Longitudinal Data," Working Papers 2015-6, University of Alberta, Department of Economics.

    More about this item

    Keywords

    Habit formation; Strategic interactions; Gains from trade;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:121:y:2013:i:1:p:101-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.