Trade Liberalization and the Degree of Competition in International Duopoly

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

Trade Liberalization and the Degree of Competition in International Duopoly. / Ashournia, Damoun; Hansen, Per Svejstrup; Hansen, Jonas Worm.

In: Review of International Economics, Vol. 21, No. 5, 2013, p. 1048–1059.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Ashournia, D, Hansen, PS & Hansen, JW 2013, 'Trade Liberalization and the Degree of Competition in International Duopoly', Review of International Economics, vol. 21, no. 5, pp. 1048–1059. https://doi.org/10.1111/roie.12090

APA

Ashournia, D., Hansen, P. S., & Hansen, J. W. (2013). Trade Liberalization and the Degree of Competition in International Duopoly. Review of International Economics, 21(5), 1048–1059. https://doi.org/10.1111/roie.12090

Vancouver

Ashournia D, Hansen PS, Hansen JW. Trade Liberalization and the Degree of Competition in International Duopoly. Review of International Economics. 2013;21(5):1048–1059. https://doi.org/10.1111/roie.12090

Author

Ashournia, Damoun ; Hansen, Per Svejstrup ; Hansen, Jonas Worm. / Trade Liberalization and the Degree of Competition in International Duopoly. In: Review of International Economics. 2013 ; Vol. 21, No. 5. pp. 1048–1059.

Bibtex

@article{302af0208a574542b616118d25fe683a,
title = "Trade Liberalization and the Degree of Competition in International Duopoly",
abstract = "This paper analyzes how a reduction in trade costs influences the possibility for firms to engage in international cartels, and hence how trade liberalization affects the degree of competition. We consider a particular intra-industry trade model amended to allow for firms producing differentiated products. Our main finding is that trade liberalization may have an anti-competitive effect. We find that there is no unique relation between a reduction in trade costs and the degree of competition. When products are differentiated, a lowering of trade costs is pro-competitive if trade costs are initially high, but anti-competitive if trade costs initially are low. Hence, trade policy is not necessarily a substitute for competition policy",
author = "Damoun Ashournia and Hansen, {Per Svejstrup} and Hansen, {Jonas Worm}",
year = "2013",
doi = "10.1111/roie.12090",
language = "English",
volume = "21",
pages = "1048–1059",
journal = "Review of International Economics",
issn = "0965-7576",
publisher = "Wiley-Blackwell",
number = "5",

}

RIS

TY - JOUR

T1 - Trade Liberalization and the Degree of Competition in International Duopoly

AU - Ashournia, Damoun

AU - Hansen, Per Svejstrup

AU - Hansen, Jonas Worm

PY - 2013

Y1 - 2013

N2 - This paper analyzes how a reduction in trade costs influences the possibility for firms to engage in international cartels, and hence how trade liberalization affects the degree of competition. We consider a particular intra-industry trade model amended to allow for firms producing differentiated products. Our main finding is that trade liberalization may have an anti-competitive effect. We find that there is no unique relation between a reduction in trade costs and the degree of competition. When products are differentiated, a lowering of trade costs is pro-competitive if trade costs are initially high, but anti-competitive if trade costs initially are low. Hence, trade policy is not necessarily a substitute for competition policy

AB - This paper analyzes how a reduction in trade costs influences the possibility for firms to engage in international cartels, and hence how trade liberalization affects the degree of competition. We consider a particular intra-industry trade model amended to allow for firms producing differentiated products. Our main finding is that trade liberalization may have an anti-competitive effect. We find that there is no unique relation between a reduction in trade costs and the degree of competition. When products are differentiated, a lowering of trade costs is pro-competitive if trade costs are initially high, but anti-competitive if trade costs initially are low. Hence, trade policy is not necessarily a substitute for competition policy

U2 - 10.1111/roie.12090

DO - 10.1111/roie.12090

M3 - Journal article

VL - 21

SP - 1048

EP - 1059

JO - Review of International Economics

JF - Review of International Economics

SN - 0965-7576

IS - 5

ER -

ID: 44163082