Product differentiation, competition, and international trade
Abstract
In this paper the two workhorse theories of international trade under imperfect competition - Krugman's taste for variety model and Brander's strategic intra-industry trade model - are integrated into a single analytical framework. A quadratic utility function allows for a nesting of these two theories by postulating a consumer taste for variety over differentiated products, where the extent of product differentiation is linked to the intensity of strategic interaction among firms. The model yields intuitive predictions on the effects of the degree of product differentiation on the volume of trade and on the composition of the gains from trade under imperfect competition.Download Info
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Bibliographic Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 34 (2001)
Issue (Month): 4 (November)
Pages: 1010-1023
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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
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Related research
Keywords:Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Fujiwara, Kenji, 2009. "Trade liberalization in a differentiated duopoly reconsidered," Research in Economics, Elsevier, vol. 63(3), pages 165-171, September.
- Kwon, Chul-Woo & Lapan, Harvey E., 2011.
"Does market familiarity bless multinational in strategic competition?,"
Japan and the World Economy,
Elsevier, vol. 23(1), pages 58-62, January.
- Kwon, Chul-Woo & Lapan, Harvey E., 2008. "Does Market Familiarity Bless Multinational in Strategic Competition," Staff General Research Papers 32486, Iowa State University, Department of Economics.
- Friberg, Richard & Ganslandt, Mattias, 2005.
"Reciprocal dumping with Bertrand competition,"
Working Paper Series in Economics and Finance
592, Stockholm School of Economics.
- Friberg, Richard & Ganslandt, Mattias, 2005. "Reciprocal Dumping with Bertrand Competition," Working Paper Series 638, Research Institute of Industrial Economics.
- Friberg, Richard & Ganslandt, Mattias, 2005. "Reciprocal Dumping with Bertrand Competition," CEPR Discussion Papers 5023, C.E.P.R. Discussion Papers.
- Paulo Bastos & Odd Rune Straume, 2010.
"Globalization, product differentiation and wage inequality,"
NIPE Working Papers
8/2010, NIPE - Universidade do Minho.
- Paulo Bastos & Odd Rune Straume, 2012. "Globalization, product differentiation, and wage inequality," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 857-878, August.
- Paulo Bastos & Odd Rune Straume, 2010. "Globalization, Product Differentiation and Wage Inequality," Research Department Publications 4679, Inter-American Development Bank, Research Department.
- Paulo Bastos & Odd Rune Straume, . "Globalization, product differentiation and wage inequality," Discussion Papers 10/03, University of Nottingham, GEP.
- Leahy, Dermot & Neary, J Peter, 2010.
"Oligopoly and Trade,"
CEPR Discussion Papers
8172, C.E.P.R. Discussion Papers.
- Peter Neary & Dermot Leahy, 2010. "Oligopoly and Trade," Economics Series Working Papers 517, University of Oxford, Department of Economics.
- 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.
- Yu-ter Wang, 2008. "Product Differentiation: An Alternative To Cvds," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 513-517, 09.
- Collie, David R. & Le, Vo Phuong Mai, 2011. "Product Differentiation, the Volume of Trade and Profits under Cournot and Bertrand Duopoly," Cardiff Economics Working Papers E2011/26, Cardiff University, Cardiff Business School, Economics Section.
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