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Spatial discrimination, nations' size and transportation costs created by Kai Andree

By: Material type: TextTextSeries: International economic journal ; Volume 27, number 3Abingdon: Taylor and Francis 2013Content type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
ISSN:
  • 10168737
Subject(s): LOC classification:
  • HB1A1 INT
Online resources: Abstract: In this paper we develop a spatial Cournot trade model with two unequally sized countries, using the geographical interpretation of the Hotelling line. We analyse the trade and welfare effects of international trade between these two countries. The welfare analysis indicates that in this framework the large country benefits from free trade and the small country may be hurt by opening to trade. This finding is contrary to the results of Shachmurove & Spiegel (1995) as well as Tharakan & Thisse (2002), who use similar models to analyze size effects in international trade, where the small country usually gains from trade and the large country may lose.
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Holdings
Item type Current library Call number Vol info Copy number Status Notes Date due Barcode
Journal Article Journal Article Main Library - Special Collections HB1A1 INT (Browse shelf(Opens below)) Vol. 27, no. 3 (pages 385-398) SP18073 Not for loan For In house Use

In this paper we develop a spatial Cournot trade model with two unequally sized countries, using the geographical interpretation of the Hotelling line. We analyse the trade and welfare effects of international trade between these two countries. The welfare analysis indicates that in this framework the large country benefits from free trade and the small country may be hurt by opening to trade. This finding is contrary to the results of Shachmurove & Spiegel (1995) as well as Tharakan & Thisse (2002), who use similar models to analyze size effects in international trade, where the small country usually gains from trade and the large country may lose.

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