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Consumer-benefiting transport cost: The role of product innovation in a vertical structure

Author

Listed:
  • Kazuhiro Takauchi

    (Faculty of Business and Commerce,Kansai University)

  • Tomomichi Mizuno

    (Graduate School of Economics, Kobe University)

Abstract

Contrary to the standard belief, we show that a positive transport cost can maximize consumer's surplus if exporting firms engage in product R&D and use their domestic inputs.

Suggested Citation

  • Kazuhiro Takauchi & Tomomichi Mizuno, 2019. "Consumer-benefiting transport cost: The role of product innovation in a vertical structure," Discussion Papers 1911, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1911
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    References listed on IDEAS

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    Cited by:

    1. Kazuhiro Takauchi & Tomomichi Mizuno & Katsufumi Fukuda, 2024. "Strategic export decisions in international trade," Discussion Papers 2401, Graduate School of Economics, Kobe University.
    2. Kazuhiro Takauchi & Tomomichi Mizuno, 2022. "Endogenous transport price, R&D spillovers, and trade," The World Economy, Wiley Blackwell, vol. 45(5), pages 1477-1500, May.

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    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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