TY  - JOUR
AU  - Horstmann,Ignatius J.
AU  - Markusen,James R.
TI  - Endogenous Market Structures in International Trade
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3283
PY  - 1990
Y2  - March 1990
UR  - http://www.nber.org/papers/w3283
L1  - http://www.nber.org/papers/w3283.pdf
N1  - Author contact info:
James R. Markusen
Department of Economics
University of Colorado
Boulder, CO 80309-0256
Tel: 303/492-0748
Fax: 303/492-8960
E-Mail: james.markusen@colorado.edu
AB  - 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.
ER  -