NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Understanding Markups in the Open Economy under Bertrand Competition

Beatriz de Blas, Katheryn Russ

NBER Working Paper No. 16587
Issued in December 2010

---- Acknowledgements -----

The authors thank seminar and conference participants at the 2010 American Economics Association winter meetings; the Banco do Portugal; the 2011 European Economics Association/Econometrics Society Meetings; the 2010 European Trade Study Group; DEGIT XV at Goethe University of Frankfurt; the Federal Reserve Banks of Dallas, Richmond, and St. Louis; the 2011 NBER International Trade and Investment Group spring meeting; the 2012 International Finance and Macroeconomics Summer Meeting; Princeton University; Stanford University; the 2012 West Coast Trade Workshop; and the 2012 Western Economics Association International meetings. They are indebted to Andrew Bernard, Ariel Burstein, Jeffrey Campbell, Robert Feenstra, Stefania Garetto, Yingyao Hu, Oleg Itskhoki, Konstantin Kucheryavyy, Karen Lewis, Anthony Landry, Marc Melitz, Virgiliu Midrigan, Kanda Naknoi, Maurice Obstfeld, David Richardson, Barbara Spencer, Jonathan Vogel, and Nick Zolas for detailed comments in early stages of the project. Beatriz de Blas acknowledges financial support from the ECO2008-04073 project of the Spanish MEC, and the CCG08-UAM/HUM-4438. This paper circulated in an earlier form under the title "Teams of Rivals: Endogenous Markups in a Ricardian World." The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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