Preferential Trade Agreements, Market Power, and Product Differentiation

• 영문명: Preferential Trade Agreements, Market Power, and Product Differentiation
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Paul E. Jensen Vibhas Madan
• 간행물 정보: 『Journal of Economic Integration』제19권 제1호, 162~181쪽, 전체 20쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2004.03.31

영문 초록

Preferential trade agreements (PTAs) usually result in increased trade amongst member countries and lower prices within the PTA. Thus the markets are assumed to be “more competitive” because lower prices are taken to imply “decreased market power” due to a reduction in price-cost margins. In this paper we empirically examine the relationship between changes in market power and product differentiation within the context of a duopoly framework with restricted entry. Using industry level trade data from the EEC we show that the formation of a PTA may increase the market power of PTA-exporters and lower the market power of non-PTA exporters. In addition, we show that these market power effects are more pronounced for less differentiated products.

목차

Ⅰ. Introduction

Ⅱ. Cournot-Duopoly and Product Differentiation

Ⅲ. Data and Empirical Model

Ⅳ. Summary and Conclusion

키워드

Preferential trade agreements Market power