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.

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective


Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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