A Product Line Life Cycle Model of Intra-industry Trade
This paper develops a technology-gap model of intraindustry trade in oligopoly industries with megacorp pricing. Firms maximize market share by choosing available products in the product line. They produce subject to a product life cycle and a constraint that the markup over average costs must be sufficient to generate funds for investment in capacity replacement, capacity expansion to meet market growth, and for product innovation. The argument shows that research and development expenditures are a necessary form of ongoing investment, not a discretionary item as is implicit in much of the literature on the theory of the firm.
Volume (Year): 14 (1988)
Issue (Month): 4 (Oct-Dec)
|Contact details of provider:|| Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA|
Phone: (201) 684-7346
Web page: https://www.quinnipiac.edu/eea/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
- Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, vol. 9(1), pages 1-24, February.
- Gary Hufbauer, 1970. "The Impact of National Characteristics & Technology on the Commodity Composition of Trade in Manufactured Goods," NBER Chapters, in: The Technology Factor in International Trade, pages 145-231 National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:14:y:1988:i:4:p:389-397. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross)
If references are entirely missing, you can add them using this form.