When autarky trumps free and costless trade

John Morgan, Justin Tumlinson () and Felix Vardy ()
Additional contact information
Justin Tumlinson: Department of Management, University of Exeter; TUM School of Management, Technical University of Munich,TUM School of Management
Felix Vardy: International Monetary Fund

Theoretical Economics, Forthcoming

Abstract: In the context of Krugman (1979)'s canonical New Trade model, we demonstrate that a country is better off in autarky than in free and costless trade, if the productivity of its trading partner is low.

Keywords: Gains from trade; trade costs; new trade theory; monopolistic competition; love of variety; scale gains; choke prices (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2026-02-03
References: Add references at CitEc
Citations:

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewForthcomingFile/6187/44245/1 Working paper version. Paper will be copyedited and typeset before publication. (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:6187

Access Statistics for this article

Theoretical Economics is currently edited by Federico Echenique, Mira Frick, Pablo Kurlat, Juuso Toikka, Rakesh Vohra

More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Editor Theoretical Economics ( this e-mail address is bad, please contact ).