Wednesday, November 23, 2011

24 November 2011: Endogenous Market Structures and International Trade

Federico Etro
University of Venice

I apply the endogenous market structures approach to international
trade. When markets are characterized by strategic interactions and
endogenous entry, opening up to trade decreases the markups, reduces
the local number of rms and increases their production, with a
positive competition effect on welfare. This is shown in traditional
models with linear and isoelastic demand under competition in
quantities and prices, and in a 2x2x2 model which nests the
Heckscher-Ohlin model, the Krugman model and the Brander-Markusen
model. Finally, I characterize the optimal import tari for a domestic
market and the optimal production subsity for an integrated market in
the presence of endogenous entry of international rms.

Date: November 24, 2011
Time: 03:00 P.M.

AMEX Conference Room (Second Floor)
Department of Economics,
Delhi School of Economics,
New Delhi-110007(INDIA)


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