Fixed Transport Costs and International Trade

Didier Laussel () and Raymond Riezman

No 1764, CESifo Working Paper Series from CESifo

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.

Date: 2006
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1764

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