Myopic or farsighted : bilateral trade agreements among three symmetric countries
We examine network formation via bilateral trade agreement (BTA) among three symmetric countries. Each government decides whether to form a link or not via a BTA depending on the differential of ex-post and ex-ante sum of real wages in the country. We model the governmental decision in two forms, myopic and farsighted and analyze the effects on the BTA network formation. First, we find that both myopic and farsighted games never induce the formation of star networks nor empty networks. Second, the networks resulting from myopic game coincides with those resulting from farsighted games.
|Date of creation:||Jan 2011|
|Publication status:||Published in IDE Discussion Paper. No. 274. 2011. 1|
|Contact details of provider:|| Postal: 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545|
Web page: http://www.ide.go.jp/
More information through EDIRC
|Order Information:|| Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN|
Web: http://www.ide.go.jp/English/Publish/Order Email:
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.:
- Kristian Behrens & Carl Gaigné & Gianmarco I.P. Ottaviano & Jacques-François Thisse, 2006.
"Is remoteness a locational disadvantage?,"
Journal of Economic Geography,
Oxford University Press, vol. 6(3), pages 347-368, June.
- Kristian Behrens & Carl Gaigné & Gianmarco I.P. Ottaviano & Jacques-François Thisse, 2012. "Is remoteness a locational disadvantage?," Post-Print hal-01208824, HAL.
- BEHRENS, Kristian & GAIGNE, Carl & OTTAVIANO, Gianmarco I.P. & THISSE, Jacques-François, "undated". "Is remoteness a locational disadvantage?," CORE Discussion Papers RP 1905, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Furusawa, Taiji & Konishi, Hideo, 2007.
"Free trade networks,"
Journal of International Economics,
Elsevier, vol. 72(2), pages 310-335, July.
- Behrens, Kristian, 2007.
"On the location and lock-in of cities: Geography vs transportation technology,"
Regional Science and Urban Economics,
Elsevier, vol. 37(1), pages 22-45, January.
- BEHRENS, Kristian, 2004. "On the location and ‘lock-in’ of cities : geography vs. transportation technology," CORE Discussion Papers 2004044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BEHRENS, Kristian, "undated". "On the location and lock-in of cities: geography vs transportation technology," CORE Discussion Papers RP 1948, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hiroshi Mukunoki & Kentaro Tachi, 2006. "Multilateralism and Hub-and-Spoke Bilateralism," Review of International Economics, Wiley Blackwell, vol. 14(4), pages 658-674, 09.
- Mori, Tomoya & Nishikimi, Koji, 2002. "Economies of transport density and industrial agglomeration," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 167-200, March.
- Takanori Ago & Ikumo Isono & Takatoshi Tabuchi, 2006. "Locational disadvantage of the hub," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 819-848, December.
When requesting a correction, please mention this item's handle: RePEc:jet:dpaper:dpaper274. 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: (Marie Kobayashi)
If references are entirely missing, you can add them using this form.