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Profit or growth?: why you don't have to choose
Producing experience in marketplace encounters: a study of consumption experiences in art exhibitions and trade fairs
In: Acta universitatis oeconomicae Helsingiensis
In: A 299
World Affairs Online
The UN and the global marketplace: economic developments
In: The United Nations - global leadership
Economic development -- Sustainable development -- Agenda 21 -- Development programs -- Financing development
Sub-national differentiation and the role of the firm in optimal international pricing
In: NBER working paper series 13130
We illuminate the relationship between optimal firm pricing and optimal trade policy by exploring a generalized model that accommodates product differentiation at both the national and sub-national (firm) levels. We assume monopolistic competition in the differentiated products at the sub-national level. When the national and sub-national substitution elasticities are similar we find little opportunity for small countries to improve their terms of trade through trade distortions, because firms play an important preemptive role in optimally pricing unique varieties. We contrast this with standard applications of perfect-competition Armington models, which exhibit high optimal tariffs--even for relatively small countries.