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Strategic exporting in an international oligopoly

Author

Listed:
  • Kazuhiro Takauchi

    (Faculty of Business and Commerce, Kansai University)

  • Tomomichi Mizuno

    (Graduate School of Economics, Kobe University)

Abstract

In this paper, we build a model in which firms choose whether to export. We show that if the fixed export cost is small and the transport cost is high, the coexistence of exporters and non- exporters can appear. We also show that trade liberalization may reduce consumer and total surpluses. Because the competition authority often cherishes consumer welfare, our finding offers an important insight into the relation between export activity and competition policy.

Suggested Citation

  • Kazuhiro Takauchi & Tomomichi Mizuno, 2022. "Strategic exporting in an international oligopoly," Discussion Papers 2216, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2216
    as

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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2022/2216.pdf
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    References listed on IDEAS

    as
    1. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
    2. Grossmann, Volker, 2007. "Firm size and diversification: Multiproduct firms in asymmetric oligopoly," International Journal of Industrial Organization, Elsevier, vol. 25(1), pages 51-67, February.
    3. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-564, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Exporting; Fixed export cost; Transport cost; Trade liberalization; Oligopoly;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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