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Product Imitation, Product Differentiation and International Trade

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  • Schmitt, Nicolas

Abstract

Using the Hotelling approach to product differentiation, this article derives the equilibrium product configurations and prices when two firms enter and sell in two interdependent markets separated by barriers to trade. It shows that product imitation and no trade as well as product differentiation with two-way or one-way trade are all consistent with the equilibrium. Copyright 1995 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Schmitt, Nicolas, 1995. "Product Imitation, Product Differentiation and International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 583-608, August.
    • Handle: RePEc:ier:iecrev:v:36:y:1995:i:3:p:583-608
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    Citations

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    Cited by:

    1. Gianni De Fraja & George Norman, 2004. "Product Differentiation and the Location of International Production," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(1), pages 151-170, March.
    2. Hernan Vallejo, 2006. "International trade, migration and investment with horizontal product differentiation and free entry and exit of firms," Revista de Economía del Rosario, Universidad del Rosario, November.
    3. Berg, Nathan, 2008. "Imitation in location choice," MPRA Paper 26592, University Library of Munich, Germany.
    4. Carlos Hernán González-Campo & Vanessa Zamora Mina, 2020. "Comportamiento de los agentes en el comercio electrónico según modelos de localización," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, vol. 28(1), pages 47-65, June.
    5. Tharakan, Joe & Thisse, Jacques-Francois, 2002. "The importance of being small. Or when countries are areas and not points," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 381-408, May.
    6. Kresimir Zigic, 2001. "Strategic Trade Policy, Spillovers, and the Uncertain Mode of," Industrial Organization 0012008, University Library of Munich, Germany.
    7. E. Bacchiega & A. Minniti, 2005. "Location in a Vertically Differentiated Industry," Working Papers 546, Dipartimento Scienze Economiche, Universita' di Bologna.
    8. Andaluz, Joaquin, 2000. "On protection and vertical product differentiation," Regional Science and Urban Economics, Elsevier, vol. 30(1), pages 77-97, January.
    9. L. Lambertini, 2002. "the Specialization of Production and Labour Mobility Under Endogenous Differentiation," Working Papers 453, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Onur A. Koska, 2020. "Sourcing product quality for foreign market entry," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(3), pages 669-702, August.

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