This paper uses the three-country duopoly model to examine the effects of lowered trade barriers when a new entrant joins a trading bloc. There are two firms—
This paper uses the three-country duopoly model to examine the effects of lowered trade barriers when a new entrant joins a trading bloc. There are two firms a
The recent proliferation of free trade areas and customs unions in the world trading system has led to a revival of interest in the economic analysis of Prefere
In this paper, we present a model where trade is motivated both by preference for variety and comparative advantages. We use this framework to analyze the welfa