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Welfare effects of common ownership in an international duopoly

Liu, Yi and Matsumura, Toshihiro (2022): Welfare effects of common ownership in an international duopoly.

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Abstract

We formulate an international oligopoly model in the presence of global common ownership. We theoretically investigate how common ownership affects the volume of international trade in an oligopoly market and global welfare. We find that welfare decreases (increases) with the degree of common ownership when the international transport costs are low (high)

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