Competition for firms in an oligopolistic industry: The impact of economic integration |
| |
Authors: | Andreas Haufler Ian Wooton |
| |
Affiliation: | aUniversity of Munich, Germany;bCESifo, Germany;cUniversity of Strathclyde, United Kingdom;dCEPR, United Kingdom |
| |
Abstract: | We set up a model of generalised oligopoly where two countries of different size compete for an exogenous, but variable, number of identical firms. The model combines a desire by national governments to attract internationally mobile firms with the existence of location rents that arise even in a symmetric equilibrium where firms are dispersed. As economic integration proceeds, equilibrium taxes initially decline, but then rise again as trade costs fall even further. A range of trade costs is identified where economic integration raises the welfare of the small country, but lowers welfare in the large country. |
| |
Keywords: | JEL classification: F15 F23 H25 H73 |
本文献已被 ScienceDirect 等数据库收录! |
|