[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/1995068.html
   My bibliography  Save this paper

Cost Uncertainty and Trade Liberalization in International Oligopoly

Author

Listed:
  • MONER COLONQUES , Rafael

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium an Universitat de Valencia, Spain)

Abstract
In a game of incomplete information about costs we investigate conditions under which autarkic firms benefit from the opening of trade, both when the number of firms is exogenously and endogenously fixed. A social point of view is also taken to check under which circumstances bilateral trade liberalization is to both countries' advantage. We show that there may be cases when free trade is privately and socially favourable compared to the autarky situation. Typically everybody's interests harmonize for a certain degree of firms' diversification and a sufficiently large amount of uncertainty.

Suggested Citation

  • MONER COLONQUES , Rafael, 1995. "Cost Uncertainty and Trade Liberalization in International Oligopoly," LIDAM Discussion Papers CORE 1995068, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1995068
    as

    Download full text from publisher

    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp1995.html
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Brander, James & Krugman, Paul, 1983. "A 'reciprocal dumping' model of international trade," Journal of International Economics, Elsevier, vol. 15(3-4), pages 313-321, November.
    2. Anderson, Simon P & Donsimoni, M-P & Gabszewicz, J J, 1989. "Is International Trade Profitable to Oligopolistic Industries?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(4), pages 725-733, November.
    3. Brainard, S. Lael & Martimort, David, 1997. "Strategic trade policy with incompletely informed policymakers," Journal of International Economics, Elsevier, vol. 42(1-2), pages 33-65, February.
    4. Markusen, James R. & Venables, Anthony J., 1988. "Trade policy with increasing returns and imperfect competition : Contradictory results from competing assumptions," Journal of International Economics, Elsevier, vol. 24(3-4), pages 299-316, May.
    5. Moner-Colonques, Rafael, 1998. "Cost uncertainty and trade liberalization in international oligopoly," Journal of International Economics, Elsevier, vol. 45(2), pages 369-376, August.
    6. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    7. Jonathan Eaton & Gene M. Grossman, 1986. "Optimal Trade and Industrial Policy Under Oligopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 383-406.
    8. T. Cordella, 1990. "Trade Liberalizaiton and Oligopolistic Industries: a Welfare Appraisal," Working Papers 100, Dipartimento Scienze Economiche, Universita' di Bologna.
    9. Antonio Cabrales & Massimo Motta, 1996. "Country asymmetries, endogenous product choice and the speed of trade liberalization," Economics Working Papers 259, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 1998.
    10. Carl Shapiro, 1986. "Exchange of Cost Information in Oligopoly," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(3), pages 433-446.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moner-Colonques, Rafael, 1998. "Cost uncertainty and trade liberalization in international oligopoly," Journal of International Economics, Elsevier, vol. 45(2), pages 369-376, August.
    2. Larue, Bruno & Yapo, Vincent, 2000. "Asymmetries in risk and in risk attitude: the duopoly case," Journal of Economics and Business, Elsevier, vol. 52(5), pages 435-453.
    3. José J. Sempere Monerris & Rafael Moner Colonques & Amparo Urbano Salvador, 2010. "Trade liberalization in vertically related markets," Working Papers. Serie AD 2010-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455, Elsevier.
    2. José J. Sempere Monerris & Rafael Moner Colonques & Amparo Urbano Salvador, 2010. "Trade liberalization in vertically related markets," Working Papers. Serie AD 2010-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Ignatius J. Horstmann & James R. Markusen, 1990. "Endogenous Market Structures in International Trade," NBER Working Papers 3283, National Bureau of Economic Research, Inc.
    4. Roberto A. De Santis & Frank Stähler, 2001. "Trade Policies for Exporting Industries under Free Entry," German Economic Review, Verein für Socialpolitik, vol. 2(4), pages 327-338, November.
    5. Dermot Leahy & J. Peter Neary, 2013. "Oligopoly and Trade," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 7, pages 197-235, Palgrave Macmillan.
    6. Frank Stähler & Thorsten Upmann, 2008. "Market Entry Regulation and International Competition," Review of International Economics, Wiley Blackwell, vol. 16(4), pages 611-626, September.
    7. Venables, Anthony, 1996. "Lecture Notes on International Trade and Imperfect Competition," Working Paper Series 463, Research Institute of Industrial Economics.
    8. Sun, Ning & Yao, Hongxin, 2011. "Manipulable behavior in international trade," Economic Modelling, Elsevier, vol. 28(1), pages 60-66.
    9. Gersbach, Hans & Schniewind, Achim, 2008. "Imperfect competition, general equilibrium and unemployment," Journal of Economic Dynamics and Control, Elsevier, vol. 32(5), pages 1381-1398, May.
    10. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1414-1444, December.
    11. Federico Etro, 2012. "Endogenous Market Structures and International Trade. II: Optimal Trade Policy," Working Papers 2012:32, Department of Economics, University of Venice "Ca' Foscari".
    12. Vittoria Idrisova, 2011. "Application of non-tariff barriers," Research Paper Series, Gaidar Institute for Economic Policy, issue 150P.
    13. Sergey Tsukhlo, 2011. "Competition in the Russian Industry in 2003–2009," Research Paper Series, Gaidar Institute for Economic Policy, issue 151P.
    14. Sun, Ning & Yao, Hongxin, 2011. "Manipulable behavior in international trade," Economic Modelling, Elsevier, vol. 28(1-2), pages 60-66, January.
    15. Harris, Richard G., 1989. "The New Protectionism Revisited," Queen's Institute for Economic Research Discussion Papers 275219, Queen's University - Department of Economics.
    16. Federico Etro, 2014. "Optimal Trade Policy under Endogenous Foreign Entry," The Economic Record, The Economic Society of Australia, vol. 90(290), pages 282-300, September.
    17. Fletcher, Stanley M. & Nadolnyak, Denis A., 2005. "Accommodating Imperfect Competition in A Model of World Peanut Trade," 2005 Annual meeting, July 24-27, Providence, RI 19460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Bernard, Jean-Thomas & Dupéré, Marc & Roland, Michel, 2003. "International Competition between Public or Mixed Enterprises," Cahiers de recherche 0301, Université Laval - Département d'économique.
    19. Pierre-Philippe Combes & Bernard Caillaud & Bruno Jullien, 1997. "Common Market with Regulated Firms," Annals of Economics and Statistics, GENES, issue 47, pages 65-99.
    20. Qianqian Shao & Thorsten Janus & Maarten J. Punt & Justus Wesseler, 2018. "The Conservation Effects of Trade with Imperfect Competition and Biased Policymakers," Agriculture, MDPI, vol. 8(7), pages 1-22, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cor:louvco:1995068. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alain GILLIS (email available below). General contact details of provider: https://edirc.repec.org/data/coreebe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.