Country Asymmetries, Endogenous Product Choice and the Speed of Trade Liberalization

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dc.contributor.author Cabrales, Antonio
dc.contributor.author Motta, Massimo
dc.date.accessioned 2009-01-27T09:18:00Z
dc.date.available 2009-01-27T09:18:00Z
dc.date.issued 1998-01
dc.identifier.uri http://hdl.handle.net/10016/3501
dc.description.abstract We analyze the e ects of trade liberalization on rms' decisions and pro ts in a vertical product di erentiation model with countries which have di erent characteristics. Firms decide product speci cations at the beginning of the game, in which autarky is followed by trade liberalization (whose date is anticipated). Our analysis suggests that a rm located in a large (or rich) country is the likely market leader at the trade equilibrium. This outcome might be reversed if small country rms have a strong cost advantage, transport costs are negligible, or if the large country opens its market before the small one.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Universidad Pompeu Fabra. Departamento de Economia y Empresa
dc.relation.ispartofseries Working Papers;
dc.relation.ispartofseries 1998-259
dc.title Country Asymmetries, Endogenous Product Choice and the Speed of Trade Liberalization
dc.type workingPaper
dc.relation.publisherversion http://www.econ.upf.edu/docs/papers/downloads/259.pdf
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
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