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Welfare effects of common ownership in an international duopoly

Author

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  • Liu, Yi
  • Matsumura, Toshihiro

Abstract

We formulate an international oligopoly model in the presence of global common ownership. We theoretically investigate how common ownership affects the volume of international trade in an oligopoly market and global welfare. We find that welfare decreases (increases) with the degree of common ownership when the international transport costs are low (high)

Suggested Citation

  • Liu, Yi & Matsumura, Toshihiro, 2022. "Welfare effects of common ownership in an international duopoly," MPRA Paper 115177, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115177
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    overlapping ownership; transport cost; welfare-improving production substitution;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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