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| Toru Kikuchi |
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| ''Switching costs and the impact of trade liberalization'' |
| ( 2007, Vol. 6 No.6 ) |
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| This paper considers a two-period model of market entry with horizontally differentiated products and switching costs. Conditions that are conducive to a competitive environment in the second period are shown to yield a less competitive outcome in the first period. That is, when the marginal cost of a foreign entrant is relatively low, the first-period output of a domestic monopolist is relatively low as well. |
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| Keywords: cost competitiveness |
JEL: F1 - Trade: General
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| Manuscript Received : Mar 06 2007 | | Manuscript Accepted : Mar 07 2007 |
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