@techreport{NBERw3283,
 title = "Endogenous Market Structures in International Trade",
 author = "Ignatius J. Horstmann and James R. Markusen",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3283",
 year = "1990",
 month = "March",
 URL = "http://www.nber.org/papers/w3283",
 abstract = {Almost all of the large literature on international trade with imperfect competition assumes exogenous market structures. The purpose of this paper is to develop a simple model that generates alternative market structures as Nash equilibria for different parameterizations of the basic model. Familiar configurations such as a duopoly competing in exports or a single multinational producing in both markets arise as special cases. Small tax-policy changes can produce large welfare effects as the equilibrium market structure shifts, implying discontinuous jumps in prices, quantities, and profits.},
}