Reciprocal Dumping with Product Differentiation

Reprint No. 2008:25

Author(s): Richard Friberg and Mattias GanslandtYear: 2008 Title: Review of International Economics Volume (No.): 16 (5) Pages: 942–954

This paper examines if international trade can reduce total welfare in an international oligopoly with differentiated goods. We show that intra-industry trade, i.e. “reciprocal dumping,” can result in lower total surplus than autarky in a Cournot model for any degree of product differentiation. Moreover, trade can reduce welfare compared to autarky in a Bertrand model when the local markets are sufficiently competitive and products are sufficiently close substitutes. Otherwise it unambiguously increases welfare.

Friberg, Richard and Mattias Ganslandt (2008), "Reciprocal Dumping with Product Differentiation". Review of International Economics 16(5), 942–954.

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.


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In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

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