Product Imitation, Product Differentiation and International Trade

Nicolas Schmitt

International Economic Review, 1995, vol. 36, issue 3, 583-608

Abstract: Using the Hotelling approach to product differentiation, this article derives the equilibrium product configurations and prices when two firms enter and sell in two interdependent markets separated by barriers to trade. It shows that product imitation and no trade as well as product differentiation with two-way or one-way trade are all consistent with the equilibrium. Copyright 1995 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1995
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