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Strategic exporting in an international oligopoly

Kazuhiro Takauchi and Tomomichi Mizuno

No 2216, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: In this paper, we build a model in which firms choose whether to export. We show that if the fixed export cost is small and the transport cost is high, the coexistence of exporters and non- exporters can appear. We also show that trade liberalization may reduce consumer and total surpluses. Because the competition authority often cherishes consumer welfare, our finding offers an important insight into the relation between export activity and competition policy.

Keywords: Exporting; Fixed export cost; Transport cost; Trade liberalization; Oligopoly (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2022-12
New Economics Papers: this item is included in nep-com, nep-ind and nep-int
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