TY - JOUR
T1 - Trade policy with increasing returns and imperfect competition. Contradictory results from competing assumptions
AU - Markusen, James R.
AU - Venables, Anthony J.
PY - 1988/5
Y1 - 1988/5
N2 - A number of recent papers derive different results about the effects of trade and industrial policy on imperfectly competitive industries. This paper sets out a single model within which policy under different market structures can be examined. We consider the four types of market structure generated by oligopoly versus free entry, and segmented markets versus integrated markets. We conclude that the effects of policy are greater when markets are segmented than when they are integrated, and that - if transport costs are small - policy is more potent when the number of firms is fixed than when there is free entry.
AB - A number of recent papers derive different results about the effects of trade and industrial policy on imperfectly competitive industries. This paper sets out a single model within which policy under different market structures can be examined. We consider the four types of market structure generated by oligopoly versus free entry, and segmented markets versus integrated markets. We conclude that the effects of policy are greater when markets are segmented than when they are integrated, and that - if transport costs are small - policy is more potent when the number of firms is fixed than when there is free entry.
UR - http://www.scopus.com/inward/record.url?scp=38249029194&partnerID=8YFLogxK
U2 - 10.1016/0022-1996(88)90039-6
DO - 10.1016/0022-1996(88)90039-6
M3 - Article
AN - SCOPUS:38249029194
SN - 0022-1996
VL - 24
SP - 299
EP - 316
JO - Journal of International Economics
JF - Journal of International Economics
IS - 3-4
ER -