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Chapter 5 Fixed Transport Costs and International Trade

Didier Laussel and Raymond Riezman

A chapter in Contemporary and Emerging Issues in Trade Theory and Policy, 2008, pp 91-107 from Emerald Group Publishing Limited

Abstract: We develop a simple two-country model of international trade that assumes that there is a fixed cost of doing international trade. We show that this leads to multiple equilibria that can be Pareto-ranked. We examine the stability properties of these equilibria.

Keywords: Fixed cost; international trade; multiple equilibria; Pareto-ranked (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eme:fegzzz:s1574-8715(08)04005-0

DOI: 10.1016/S1574-8715(08)04005-0

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