Economics, Econometrics and Finance
4 years ago

Free Trade Boosts Welfare Under Duopoly with Differentiated Products

2 views
Royal Economic Society Annual Conference 2003
Product Differentiation and the Gains from Trade under Bertrand Duopoly
David R. Collie, Roger Clarke

Paper Summary

The article explores the benefits of free trade in a market with two companies selling similar but different products. While previous studies focused on a different scenario, this one shows that in this case, free trade always leads to positive outcomes.

Related papers

Economics, Econometrics and Finance
4 years ago

Consumers Win Big as Price Competition Trumps Quantity in Oligopolies

Market Dynamics
Monetary Models
Economic Institutions
3 views
Economics, Econometrics and Finance
4 years ago

International trade may harm welfare in oligopolies with similar products.

Trade Impact
Market Dynamics
Public Finance
1 view
Business, Management and Accounting
4 years ago

Export taxes in Nash equilibrium boost welfare over free trade in duopoly.

Tax Avoidance
Infrastructure Impact
Market Dynamics