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Trade liberalization in a differentiated duopoly reconsidered

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  • Fujiwara, Kenji

Abstract

Constructing a model of differentiated Cournot duopoly, we consider welfare effects of trade liberalization (i.e. reductions in transport costs). We examine both multilateral trade (i.e. the firms in both countries export bilaterally) and unilateral trade, under which foreign entry is possible but the home firm cannot export. Some new results on trade gains under differentiated oligopoly are proved and their implications are discussed.

Suggested Citation

  • Fujiwara, Kenji, 2009. "Trade liberalization in a differentiated duopoly reconsidered," Research in Economics, Elsevier, vol. 63(3), pages 165-171, September.
    • Handle: RePEc:eee:reecon:v:63:y:2009:i:3:p:165-171
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    References listed on IDEAS

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