Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/159105 
Year of Publication: 
1996
Series/Report no.: 
Quaderni - Working Paper DSE No. 262
Publisher: 
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna
Abstract: 
The consequences of free trade are investigated in an international duopoly under horizontal differentiation and convex transportation costs. It is shown that the smaller country may benefit from trade if it is sufficiently small to allow for a significant volume of exports by the domestic firm. On the contrary, the larger country never benefits from trade, since liberalization decreases the domestic firm's profit more than it increases consumer surplus.
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

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