All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Toru Kikuchi
''Switching costs and the impact of trade liberalization''
( 2007, Vol. 6 No.6 )
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.
Keywords: cost competitiveness
JEL: F1 - Trade: General
Manuscript Received : Mar 06 2007 Manuscript Accepted : Mar 07 2007

  This abstract has been downloaded 2211 times                The Full PDF of this paper has been downloaded 153793 times