On sunk costs and trade liberalization in applied general equilibrium

International Economic Review

Volumn 37, Issue 3, 1996, Pages 553-571

  Mercenier, Jean ^a   Schmitt, Nicolas ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

MODELLING APPROACH; OLIGOPOLY GAME; RATIONALISATION GAIN; TRADE LIBERALISATION;

EID: 0030377207     PISSN: 00206598     EISSN: None     Source Type: Journal    
DOI: 10.2307/2527441     Document Type: Article

References (45)

1. BAGWELL, K., "Informational Product Differentiation as a Barrier to Entry," International Journal of Industrial Organization 8 (1990), 207-223.
2. BAIN, J. S., Barriers to New Competition (Cambridge: Harvard University Press, 1956).
3. BRANDER, J. A., "Intra-Industry Trade in Identical Commodities," Journal of International Economics 11 (1981), 1-14.
4. _ AND B. J. SPENCER, "Tacit Collusion, Free Entry, and Welfare," Journal of Industrial Economics 33 (1985), 277-294.
5. BROWN, D. K. AND R. M. STERN, "U.S.-Canada Bilateral Tariff Elimination: The Role of Product Differentiation and Market Structure," in R. C. Feenstra, ed., Trade Policies for International Competitiveness (Chicago: University of Chicago Press, 1989), 217-253.
6. COX, D. AND R. HARRIS, "Trade Liberalization and Industrial Organization: Some Estimates for Canada," Journal of Political Economy 93 (1985), 115-145.
7. DAVIDSON, C., "Cartel Stability and Tariff Policy," Journal of International Economics 17 (1984), 219-237.
8. DE MELO, J. AND D. ROLAND-HOLST, "Tariffs and Export Subsidies When Domestic Markets are Oligopolistic," in J. Mercenier and T. N. Srinivasan, eds., Applied General Equilibrium and Economic Development: Present Achievements and Future Trends (Ann Arbor: University of Michigan Press, 1994), 191-208.
9. DEVARAJAN, S. AND D. RODRIK, "Pro-competitive Effects of Trade Reform: Results From a CGE Model of Cameroon," European Economic Review 35 (1991), 1157-1184.
10. DIXIT, A. K., "The Role of Investment in Entry-Deterrence," Economic Journal 90 (1980), 95-106.
11. _ AND R. S. PINDYCK, Investment Under Uncertainly (Princeton: Princeton University Press, 1994).
12. _ AND J. E. STIGLITZ, "Monopolistic Competition and Optimum Product Diversity," American Economic Review 67 (1977), 297-308.
13. DOCKNER, E. J., "A Dynamic Theory of Conjectural Variations," Journal of Industrial Economics 40 (1992), 377-395.
14. ETHIER, W. J., "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review 72 (1982), 389-405.
15. FARRELL, J. AND C. SHAPIRO, "Asset Ownership and Market Structure in Oligopoly," Rand Journal of Economics 21 (1990), 275-292.
16. FRANCOIS, J. F. AND C. R. SHIELLS, eds., Modeling Trade Policy: Applied General Equilibrium Assessments of North American Free Trade (Cambridge: Cambridge University Press, 1994).
17. FUNG, K. C., "Economic Integration as Competitive Discipline," International Economic Review 33 (1992), 837-847.
18. GABSZEWICZ, J. J. AND J.-P. VIAL, "Oligopoly 'à la Cournot' in a General Equilibrium Analysis," Journal of Economic Theory 4 (1972), 381-400.
19. GASIOREK, M., A. SMITH, AND A. J. VENABLES, "1992: Trade and Welfare; A General Equilibrium Model," Center for Economic Policy Research Discussion Paper 672, March 1992.
20. GILBERT, R. J., "Mobility Barriers and the Value of Incumbency," in R. Schmalensee and R. D. Willig, eds., Handbook of Industrial Organization, Vol. 1 (Amsterdam: North-Holland, 1989), 475-535.
21. HARRIS, R., "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," American Economic Review 74 (1984), 1016-1032.
22. HART, O. D., "Imperfect Competition in General Equilibrium: An Overview of Recent Work," in K. J. Arrow and S. Honkapohja, eds., Frontiers of Economics (Oxford: Blackwell, 1985), 100-149.
23. HORSTMANN, I. J. AND J. R. MARKUSEN, "Up the Average Cost Curve: Inefficient Entry and the New Protectionism," Journal of International Economics 20 (1986), 225-247.
24. _ AND _, "Strategic Investments and the Development of Multinationals," International Economic Review 28 (1987), 109-121.
25. JOHNSON, H., "The European Common Market: Risk or Opportunity? Weltwirtschaftliches Archiv 79 (1957), 267-280.
26. KEHOE, P. J. AND T. J. KEHOE, eds., Modeling North American Economic Integration (Boston: Kluwer Academic Publishers, 1995).
27. LAPHAM, B. J. AND R. WARE, "Markov Puppy Dogs and Related Animals," International Journal of Industrial Economics 12 (1994), 569-593.
28. MARKUSEN, J. R., "Trade and the Gains from Trade with Imperfect Competition," Journal of International Economics 11 (1981), 531-551.
29. _, T. F. RUTHERFORD, AND L. HUNTER, "Trade Liberalization in a Multinational-Dominated Industry," Journal of International Economics 38 (1995), 95-117.
30. _ AND R. WIGLE, "Nash Equilibrium Tariffs for the United States and Canada: The Roles of Country Size, Scale Economies, and Capital Mobility," Journal of Political Economy 97 (1989), 368-386.
31. MERCENIER, J., "Can '1992' Reduce Unemployment in Europe? On Welfare and Employment Effects of Europe's Move to a Single Market," Journal of Policy Modeling 17 (1995a), 1-37.
32. _, "Nonuniqueness of Solutions in Applied General Equilibrium Models with Scale Economies and Imperfect Competition," Economic Theory 6 (1995b), 161-177.
33. MOTTA, M., "Sunk Costs and Trade Liberalization," Economic Journal 102 (1992), 578-587.
34. NEGISHI, T., "Monopolistic Competition and General Equilibrium," Review of Economic Studies 28 (1961), 196-201.
35. NIKAIDO, H., Monopolistic Competition and Effective Demand (Princeton: Princeton University Press, 1975).
36. PRATTEN, C., "A Survey of the Economies of Scale," Economic Papers No. 67, European Commission, October 1988.
37. ROBERTS, J. AND H. SONNENSCHEIN, "On the Foundations of the Theory of Monopolistic Competition," Econometrica 45 (1977), 101-113.
38. ROTEMBERG, J. J. AND G. SALONER, "Tariffs vs. Quotas with Implicit Collusion,"Canadian Journal of Economics 22 (1989), 237-244.
39. SCHMITT, N., "Equilibria and Entry in Two Interdependent Spatial Markets," Regional Science and Urban Economics 23 (1993), 1-27.
40. _, "Product Imitation, Product Differentiation and International Trade," International Economic Review 36 (1995), 583-608.
41. SMITH, A. AND A. J. VENABLES, "Completing the Internal Market in the European Community: Some Industry Simulations," European Economic Review 32 (1988), 1501-1525.
42. SRINIVASAN, T. N. AND J. WHALLEY, eds., General Equilibrium Trade Policy Modeling (Cambridge: MIT Press, 1986).
43. STIGLER, G. J., The Organization of Industry (Homewood: R. D. Irwin, 1968).
44. SUTTON, J., Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration (Cambridge: MIT Press, 1991).
45. WIGLE, R., "General Equilibrium Evaluation of Canada-U.S. Trade Liberalization in a Global Context," Canadian Journal of Economics 21 (1988), 539-564.