Country asymmetries, endogenous product choice and the timing of trade liberalization

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• dc.contributor.author Cabrales, Antonio
• dc.contributor.author Motta, Massimo
• dc.date.accessioned 2021-03-01T09:05:17Z
• dc.date.available 2021-03-01T09:05:17Z
• dc.date.issued 2001
• dc.description.abstract We analyze the effects of trade liberalization on firms’ decisions and profits in a vertical product differentiation model with countries which have different characteristics. Firms decide product specifications at the beginning of the game, in which autarky is followed by trade liberalization (whose date is anticipated). Our analysis suggests that a firm located in a large (or rich) country is the likely market leader at the trade equilibrium. This outcome might be reversed if small country firms have a strong cost advantage, transport costs are negligible, or if the large country opens its market before the small one.en
• dc.description.sponsorship Partial "nancial support from the CEPR - MIRAGE program (Motta) and the Spanish Ministry of Education through DGYCIT grant PB96-0302 (Cabrales) and PB94-0663 (Motta) are also gratefully acknowledged.
• dc.format.mimetype application/pdf
• dc.identifier.citation Cabrales A, Motta M. Country asymmetries, endogenous product choice and the timing of trade liberalization. Eur Econ Rev. 2001 Jan;45(1):87-107. DOI: 10.1016/S0014-2921(99)00073-2
• dc.identifier.doi http://dx.doi.org/10.1016/S0014-2921(99)00073-2
• dc.identifier.issn 0014-2921
• dc.identifier.uri http://hdl.handle.net/10230/46619
• dc.language.iso eng
• dc.publisher Elsevier
• dc.relation.ispartof European economic review. 2001 Jan;45(1):87-107
• dc.rights © Elsevier http://dx.doi.org/10.1016/S0014-2921(99)00073-2
• dc.rights.accessRights info:eu-repo/semantics/openAccess
• dc.subject.keyword Trade liberalizationen
• dc.subject.keyword Product differentiationen
• dc.subject.keyword International tradeen
• dc.title Country asymmetries, endogenous product choice and the timing of trade liberalizationen
• dc.type info:eu-repo/semantics/article
• dc.type.version info:eu-repo/semantics/acceptedVersion