Collusive Intra-industry Trade
AbstractThis paper examines the phenomenon of intraindustry trade under the condition of firm collusion. It is shown that with homogeneous goods, no collusive intraindustry trade can occur. But if the products are differentiated, firms will achieve their joint monopoly profits by exporting to each other's market. Thus, the observation of the occurrence of intraindustry trade does not necessarily mean the absence of collusion. The paper further studies the properties of such collusive trade. Despite the fact that the firms are joint monopolists, collusive two-way trade is still welfare superior to autarky for the world. Collusive intraindustry trade is also more sustainable if the firms' production costs are more similar.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 24 (1991)
Issue (Month): 2 (May)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Straume, O.R., 1999.
"Union Collusion and Intra-Industry Trade,"
Norway; Department of Economics, University of Bergen
1399, Department of Economics, University of Bergen.
- Fung, Kwok-Chiu & Garcia-Herrero, Alicia & Ng, Francis, 2013.
"International Price Dispersion and Market Segmentation in Japan and the United States: Theory and Empirics,"
ADBI Working Papers
417, Asian Development Bank Institute.
- K.C. Fung & Alicia Garcia-Herrero & Francis Ng, 2013. "International Price Dispersion and Market Segmentation in Japan and the United States : Theory and Empirics," Microeconomics Working Papers 23410, East Asian Bureau of Economic Research.
- Pio Baake & Hans-Theo Normann, 2002. "Collusive intra-industry trade in identical commodities," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(3), pages 482-492, September.
- Hartman, Darcy A. & Henderson, Dennis R. & Sheldon, Ian M., 1993. "A Cross-Section Analysis Of The Intra-Industry Trade In The U.S. Processed Food And Beverage Sectors," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(2), October.
- Dermot Leahy & J. Peter Neary, 2010.
"Oligopoly And Trade,"
Economics, Finance and Accounting Department Working Paper Series
n215-10.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
- Wegberg, M.J.A.M. & Witteloostuijn, A. van & Roscam Abbing, M., 1994. "Multimarket and multiproject collusion: why European integration may reduce intra--Community competition," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5373405, Tilburg University.
- L. Colombo & P. Labrecciosa & L. Lambertini, 2005. "A Chicken Game of Intraindustry Trade," Working Papers 548, Dipartimento Scienze Economiche, Universita' di Bologna.
- Aditya Bhattacharjea & Uday Bhanu Sinha, 2012. "Multi-market Collusion with Territorial Allocation," Working papers 217, Centre for Development Economics, Delhi School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.