search query: @author Wälde, K. / total: 3
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| Author: | Tang, P. J. G. Wälde, K. |
| Title: | International competition, growth and welfare |
| Journal: | European Economic Review
2001 : AUG, VOL. 45:8, p. 1439-1459 |
| Index terms: | COMPETITION GROWTH INTERNATIONAL BUSINESS WELFARE |
| Language: | eng |
| Abstract: | Opening up to trade implies a change in market structure as firms are exposed to new competitors. If foreign and domestic firms produce close substitutes, their interaction in the product market forces prices below the monopolistic level. Demand shifts from monopolistic to oligopolistic varieties and incentives to develop new varieties are reduced. The changing market structure constitutes a market failure as competition becomes asymmetric. |
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