International trade, differentiated goods, and strategic asymmetry.

We scrutinize international trade arising from oligopolistic rivalry (reciprocal dumping) in a model where the goods are horizontally differentiated and where otherwise symmetric firms located in different regions adopt asymmetric strategies—one competing in prices and the other competing in quantit...

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Publicado en:Southern Economic Journal Vol. 88; no. 3; pp. 1178 - 1199
Autores principales: Gilbert, John, Koska, Onur A., Oladi, Reza
Formato: Artículo
Publicado: Wiley-Blackwell Jan2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2022
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        10.1002/soej.12541
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      tig:
        atl: International trade, differentiated goods, and strategic asymmetry.
      aug:
        au:
          Gilbert, John
          Koska, Onur A.
          Oladi, Reza
        affil:
          Department of Economics & Finance, Utah State University, Logan Utah,, USA
          Department of Economics & Finance, University of Canterbury, Christchurch, New Zealand
          Department of Applied Economics, Utah State University, Logan Utah,, USA
      su:
        International trade
        Market entry
        Autarchy
        Product differentiation
        Trade shows
        Dumping (International trade)
      sug:
        subj:
          International trade
          Market entry
          Autarchy
          International Trade Financing
          Convention and Trade Show Organizers
          Product differentiation
          Trade shows
          Dumping (International trade)
      keyword:
        asymmetric strategies
        gains from trade
        intra‐industry trade
        product differentiation
        asymmetric strategies
        gains from trade
        intra‐industry trade
        product differentiation
      ab: We scrutinize international trade arising from oligopolistic rivalry (reciprocal dumping) in a model where the goods are horizontally differentiated and where otherwise symmetric firms located in different regions adopt asymmetric strategies—one competing in prices and the other competing in quantities. Unidirectional and intra‐industry trade appear endogenously in our framework. We show that as trade costs decline the equilibrium outcome will transition from autarky through a region of unidirectional trade, before intra‐industry trade ultimately arises. In the unidirectional trade region, potential market entry by the rival has an impact on firm behavior even though the rival is not exporting. The implications of product differentiation and changing trade costs for trade volumes and for the gains from trade are asymmetric in general. Welfare may rise monotonically as trade costs fall for one of the economies, but will necessarily fall initially relative to autarky for the other.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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