The consequences of free trade are investigated in an international duopoly under horizontal di¤erentiation and convex transportation costs. It is shown that the smaller country may bene...t from trade if it is su¢ciently small to allow for a signi...cant volume of exports by the domestic ...rm. On the contrary, the larger country never bene...ts from trade, since liberalization decreases the d...

There isn't nearly as much trade as standard models suggest there should be. Formal trade barriers and transport costs are too low to account for the difference. The pattern of missing trade has interesting variation across country pairs. These clues suggest the need for theoretical and eventually structural empirical work on the missing transactions costs. This paper reviews recent empirical f...

Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share target may be implemented with fairly weak informational and administrative requirements. Moreover, such policies can be both pro-competitive and advantageous to US firms. ( 1998 Elsevier Science B.V. All rights reserved. ...

This paper considers the phenomenon of third party antidumping; that is, the ability of a firm to bring an AD case in a foreign country against third party dumpers. Recent experience in New Zealand is discussed and suggestions are offered as to why a country might wish to permit foreigners to demand that other foreigners increase prices in that country. D 2005 Elsevier B.V. All rights reserved....

In this paper, we offer a general analytical framework illustrating the complex two-way interactions between trade and transnational terrorism. We then survey the recent economic literature in light of this framework by pointing to the importance in empirical studies a) to control appropriately for theses interactions, b) to distinguish between "source" countries and "target" countries of terro...

We distinguish standard settlements, in which the status quo is preserved, and injunctive settlements, which prohibit the defendant’s activity. The reverse (payment) settlement is a special type of injunctive settlement. We examine the divergence between private and social incentives to settle and policies that would minimize socially undesirable injunctive and reverse settlements (e.g., bannin...

We use microdata collected at the border and store to characterize price impact of recent US trade policy on importers, exporters, consumers. At border, import tariff pass-through is much higher than exchange rate pass-through. Chinese exporters did not lower their dollar prices by much, despite appreciation dollar. By contrast, significantly lowered affected foreign retaliatory tariffs. In sto...