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Sharing the Market or Getting Closer for a Fight? Strategic Reaction to Reduced Trade Costs

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  • Karl Morasch
  • Martin Bandulet

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  • Karl Morasch & Martin Bandulet, 2011. "Sharing the Market or Getting Closer for a Fight? Strategic Reaction to Reduced Trade Costs," Open Economies Review, Springer, vol. 22(4), pages 709-737, September.
    • Handle: RePEc:kap:openec:v:22:y:2011:i:4:p:709-737
    DOI: 10.1007/s11079-010-9169-x
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    References listed on IDEAS

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    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
    2. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    3. Farrell, Joseph & Shapiro, Carl, 1990. "Horizontal Mergers: An Equilibrium Analysis," American Economic Review, American Economic Association, vol. 80(1), pages 107-126, March.
    4. Bester, Helmut & Petrakis, Emmanuel, 1993. "The incentives for cost reduction in a differentiated industry," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 519-534.
    5. Lambertini, Luca & Rossini, Gianpaolo, 1998. "Product homogeneity as a prisoner's dilemma in a duopoly with R&D," Economics Letters, Elsevier, vol. 58(3), pages 297-301, March.
    6. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    7. J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
    8. Laussel, Didier & Paul, Thierry, 2007. "Trade and the location of industries: Some new results," Journal of International Economics, Elsevier, vol. 71(1), pages 148-166, March.
    9. David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
    10. Rosenkranz, Stephanie, 1996. "Simultaneous Choice of Process and Product Innovation," CEPR Discussion Papers 1321, C.E.P.R. Discussion Papers.
    11. Lin, Ping & Saggi, Kamal, 2002. "Product differentiation, process R&D, and the nature of market competition," European Economic Review, Elsevier, vol. 46(1), pages 201-211, January.
    12. Karl Morasch & Peter Welzel, 2000. "Emergence of Electronic Markets: Implication of Declining Transport Costs on Firm Profits and Consumer Surplus," Discussion Paper Series 196, Universitaet Augsburg, Institute for Economics.
    13. Vives, Xavier, 1985. "On the efficiency of Bertrand and Cournot equilibria with product differentation," Journal of Economic Theory, Elsevier, vol. 36(1), pages 166-175, June.
    14. Belleflamme, Paul, 2001. "Oligopolistic competition, IT use for product differentiation and the productivity paradox," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 227-248, January.
    15. Linghui Tang, 2006. "Communication Costs and Trade of Differentiated Goods," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 54-68, February.
    16. Bandulet Martin & Morasch Karl, 2003. "Incentives to Invest in Transport Cost Reduction - Conceptual Issues and an Application to Electronic Commerce," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-22, December.
    17. David M. Kreps & Jose A. Scheinkman, 1983. "Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 326-337, Autumn.
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    More about this item

    Keywords

    Electronic commerce; Trade with imperfect competition; Strategic investments; D43; F12; L13;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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