Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159105
Authors: 
Lambertini, Luca
Year of Publication: 
1996
Series/Report no.: 
Quaderni - Working Paper DSE 262
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: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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