A market is served by domestic and foreign firms, where the latter incurs a trade cost when delivering to the market. We ask now how trade liberalization -interpreted as a reduction in trade costs- affects the profitability and the welfare effects of a merger between two domestic firms.
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Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number
17/99.
Length: 9 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:norgee:17/99
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