Trade Creation and Residual Quota Protection in a Free Trade Area with Domestic Monopoly
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International Integration of Used Markets with a Monopoly Producer
We study the impact of restrictions on trade in used goods between countries in the presence of a monopolistic seller that sells in two different national markets. Contrasting with the non-durable good case, free trade in used goods may be optimal for the firm. We provide a characterization of how movements towards trade liberalization, when implemented with a quota, will affect equilibrium out...
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