Munich Personal RePEc Archive

Effects of globalizing a consumer-friendly firm into an asymmetric mixed duopoly

Leal, Mariel and Garcia, Arturo and Lee, Sang-Ho (2017): Effects of globalizing a consumer-friendly firm into an asymmetric mixed duopoly.

[img]
Preview
PDF
MPRA_paper_83512.pdf

Download (359kB) | Preview

Abstract

We study the effects of uniting two separated markets, each monopolized by a producer, into a single globalized duopoly market. When one of the firms is consumer-friendly before and after globalization, we examine certain conditions under which globalization turns out to be beneficial. Consumers in the local market which the consumer-friendly firm is from may have their surplus reduced under certain conditions. We also find conditions under which welfare of one market or the other can be reduced, even that of both simultaneously. If these conditions were met, it would be better, in a globalizing context, that the firm is friendly only with the consumers of its original market and not with those of the global market.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.