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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.

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Bibliographic Info

Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 36 (1995)
Issue (Month): 3 (August)
Pages: 583-608

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Handle: RePEc:ier:iecrev:v:36:y:1995:i:3:p:583-608

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Cited by:
  1. Gianni De Fraja & George Norman, 1998. "Product Differentiation and the Location of International Production," Discussion Papers Series, Department of Economics, Tufts University 9814, Department of Economics, Tufts University.
  2. 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.
  3. Andaluz, Joaquin, 2000. "On protection and vertical product differentiation," Regional Science and Urban Economics, Elsevier, vol. 30(1), pages 77-97, January.
  4. Berg, Nathan, 2008. "Imitation in location choice," MPRA Paper 26592, University Library of Munich, Germany.
  5. Hernán Vallejo G, 2005. "International Trade, Migration And Investment With Horizontal Product Differentiation And Free Entry And Exit Of Firms," DOCUMENTOS CEDE 002917, UNIVERSIDAD DE LOS ANDES-CEDE.
  6. E. Bacchiega & A. Minniti, 2005. "Location in a Vertically Differentiated Industry," Working Papers 546, Dipartimento Scienze Economiche, Universita' di Bologna.
  7. L. Lambertini, 2002. "the Specialization of Production and Labour Mobility Under Endogenous Differentiation," Working Papers 453, Dipartimento Scienze Economiche, Universita' di Bologna.
  8. Kresimir Zigic, 2001. "Strategic Trade Policy, Spillovers, and the Uncertain Mode of," Industrial Organization 0012008, EconWPA.

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