Intra-Industry Trade with Substitutes and Complements under Bertrand Duopoly

• 영문명: Intra-Industry Trade with Substitutes and Complements under Bertrand Duopoly
• 발행기관: 한국무역연구원
• 저자명: Ilseok Yang Meekyung Jung
• 간행물 정보: 『무역연구』제10권 제2호, 23~41쪽, 전체 18쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2014.04.30

영문 초록

This paper analyzes Bertrand equilibria when goods are substitutes and complements under multilateral free trade. We first show that if transport cost is sufficiently large, the home firm and the foreign firm, respectively, supply more in the domestic market when goods are substitutes than when goods are complements. However, if the home firm and the foreign firm, respectively, have an incentive to export, they export more when goods are complements than when goods are substitutes. We also present and analyze the conditions that the consumer surpluses, the producer surpluses, and the welfare of the home country and the foreign country, respectively, are greater when goods are substitutes than when goods are complements.

목차

Abstract

Ⅰ. Introduction

Ⅱ. The Basic Model

Ⅲ. Bertrand Equilibria with Substitutes and Complements

Ⅳ. Consumer Surplus, Producer Surplus, and Welfare

Ⅴ. Concluding remarks

References

키워드

Intra-Industry Trade Substitutes Complements Bertrand Duopoly Transport Cost