经济代写|国际经济学代写International Economics代考|EC340

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经济代写|国际经济学代写International Economics代考|IIT IN IDENTICAL PRODUCTS

IIT in identical products may arise for two reasons. The first and the simplest reason lies in transport costs. Consider two large neighbouring countries Canada and the US. When transport costs increase with the distance that a good is transported then it is cost minimizing for a trader to buy a good from a production location nearest to his selling location. If transport costs are the same regardless of the destination, being within the same or across political boundaries, and there is free movement of goods across countries, then the nearest production location may well be across the border. For example, it may be cost saving for an American seller in the Buffalo county region to import a good from border-states in Canada rather than transporting the same good from production units in California or Arizona in the United States.

Similar incentives may exist for a Canadian seller in British Columbia for importing the same good from the border-states of the United States such as Alaska or Washington DC, to save on transport cost. Thus, transport costs may explain this type of border trade in identical goods. However, note that this explanation holds only for trading nations that have a large common border and are themselves large geographically so that transporting a good from a production location within the country is costlier than transporting the same good from a production location in the other country.

The second reason why IIT in identical products can arise is rooted in the motive for reciprocal dumping under market imperfections. This explanation does not require trading partners to have common borders or be geographically large themselves. James Brander (1981) was the first to offer this explanation for IIT in identical goods among similar countries, which was subsequently refined and extended by James Brander and Paul Krugman (1983). A voluminous body of literature grew thereafter with different underlying assumptions regarding the market structure and the strategic interaction not only among firms but also among national governments in terms of their trade policy instruments. For these defining characteristics of strategic interaction, this body of IIT literature is also known as the strategic trade theory.

Suppose computers of an identical variety are being produced in India and the United States by monopoly firms in each country. The production technology is the same everywhere and exhibits constant returns to scale. Setting aside other goods that are being produced under perfectly competitive conditions in India, the domestic market for computers is depicted in Figure 8.2. Suppose the local demand for computers varies linearly with its price, and the marginal cost of production is constant with no fixed costs of production whatsoever.

经济代写|国际经济学代写International Economics代考|IIT IN HORIZONTALLY DIFFERENTIATED PRODUCTS

Economies of scale, or increasing returns to scale technology, which itself gives rise to market power for firms, is a main explanation for IIT in differentiated products. The theoretical explanations for this category of IIT are couched in terms of a monopolistically competitive market environment under the assumptions of economies of scale and different varieties of the samegood that distinct and yet close substitutes of each other. Economies of scale do not allow a particular variety to be produced by more than two firms. Thus, each firm has monopoly power over the variety it produces. At the same time, the varieties are assumed to be close substitutes to each other in consumption and hence to compete with each other. The market power of firms is thus limited. Given such a monopolistically competitive market environment, two distinct theoretical explanations have emerged that differ with respect to the characterization of consumers’ preferences and the nature of the differentiated varieties. One is Paul Krugman’s (1979) analysis based on Dixit and Stiglitz’s (1977) ‘love for variety’ approach and the other is Helpman’s (1981) analysis based on the ‘characteristics’ approach developed by Lancaster (1979).

Paul Krugman in his seminal works in 1979 and 1980 , used the Chamberlinian monopolistic competition and the Dixit-Stiglitz type consumer preference for a love for variety to offer his explanation of IIT in differentiated products. By the love for variety specification, a typical consumer prefers variety and thus buys all the varieties that are available in the market. Her utility improves not only from the number of units of each variety that she consumes, but more importantly from the number of varieties that she can consume. Thus, if $n$ varieties are available in the market, then the simplest way to capture her preference is through the following additively separable utility function:
$$
U=v\left(c_1\right)+v\left(c_2\right)+v\left(c_3\right)+\ldots \ldots+v\left(c_n\right), v^{\prime}\left(c_i\right)>0, v^{\prime \prime}\left(c_j\right)<0
$$
where $c_i$ is the unit of the $i$-th variety purchased and consumed. Note that all varieties enter her utility function in the same way, meaning that a particular variety per se does not matter. What matters to her is the number of varieties that she consumes. This is not something which is unusual because in the Chamberlinian product variety concept, varieties are superficially differentiated from each other. On the other hand, examples of love for variety are not hard to find. The typical example is that of dress material. When we buy more than one shirt, it is highly unlikely that we will buy two shirts of the same colour. We may have a preference for a particular colour, green or blue or grey, but here this is immaterial. Despite our preference for a particular colour, we do mix our wardrobes with shirts of different colours because we love variety. Similar love for variety is evident in purchase of neck-ties, shoes, contact lenses, ear-rings, ice-creams of different flavours, and the like.

经济代写|国际经济学代写International Economics代考|EC340

经济代写|国际经济学代写国际经济代考|IIT IN相同的产品


相同产品的IIT可能有两个原因。第一个也是最简单的原因在于运输成本。以两个邻国加拿大和美国为例。当运输成本随着货物运输距离的增加而增加时,贸易商从离销售地点最近的生产地点购买货物是成本最小的。如果不论目的地如何,在同一政治边界内或跨越政治边界,运输成本都是相同的,而且货物可以在国家间自由流动,那么最近的生产地点很可能是跨越边界的。例如,对于布法罗县地区的美国卖家来说,从加拿大边境各州进口一件商品,而不是从美国加利福尼亚州或亚利桑那州的生产单位运输同样的商品,可能会节省成本


对于不列颠哥伦比亚省的加拿大卖家来说,从美国的边境州(如阿拉斯加或华盛顿特区)进口同样的商品,以节省运输成本,也可能存在类似的激励措施。因此,运输成本可以解释这种同类商品的边境贸易。但是,请注意,这一解释只适用于那些共同边界大、自身地理位置大的贸易国,因此从该国境内的生产地点运输同一商品的成本高于从另一国的生产地点运输同一商品的成本


第二个原因是,在市场不完善的情况下,同类产品会出现IIT,其根源在于相互倾销的动机。这一解释并不要求贸易伙伴有共同的边界,也不要求贸易伙伴本身在地理上很大。James Brander(1981)是第一个对类似国家中相同商品的IIT提出这一解释的人,随后由James Brander和Paul Krugman(1983)改进和扩展。此后,关于市场结构和不仅是公司之间的战略相互作用,而且是各国政府之间的贸易政策工具的战略相互作用的各种基本假设的大量文献不断涌现。由于战略互动的这些决定性特征,IIT的这部分文献也被称为战略贸易理论


假设印度和美国的垄断公司生产相同种类的计算机。生产技术在任何地方都是一样的,并显示出持续的规模回报。除去印度在完全竞争条件下生产的其他商品,国内计算机市场如图8.2所示。假设本地对计算机的需求随其价格线性变化,边际生产成本是恒定的,没有固定的生产成本。

经济代写|国际经济学代写国际经济学代考|IIT IN水平差异化产品


规模经济,或规模技术回报的增加,本身为企业带来了市场力量,是差异化产品中IIT的一个主要解释。对这一类IIT的理论解释是在规模经济和同一商品的不同品种彼此明显而紧密的替代品假设下的垄断竞争市场环境中提出的。规模经济不允许某一品种由两家以上的公司生产。因此,每个公司都对其生产的品种拥有垄断权力。同时,假设品种之间在消费上是紧密的替代关系,从而产生竞争关系。因此公司的市场力量是有限的。在这样一个垄断竞争的市场环境下,出现了两种截然不同的理论解释,它们在消费者偏好的表征和差异化品种的性质方面存在差异。一个是保罗·克鲁格曼(1979)基于迪克西特和斯蒂格利茨(1977)的分析另一种是Helpman(1981)基于Lancaster(1979)开发的“特征”方法进行的分析


保罗·克鲁格曼在1979年和1980年的开创性著作中,利用张伯伦垄断竞争理论和迪克西特-斯蒂格利茨型消费者偏好理论对差异化产品中的IIT进行了解释。由于对品种规格的喜爱,典型的消费者更喜欢品种,因此购买市场上所有的品种。她的效用不仅来自于她所消费的每个品种的单位数量,更重要的是来自于她所消费的品种数量。因此,如果市场上有$n$个品种,那么获取她的偏好的最简单方法是通过以下可加可分效用函数:
$$
U=v\left(c_1\right)+v\left(c_2\right)+v\left(c_3\right)+\ldots \ldots+v\left(c_n\right), v^{\prime}\left(c_i\right)>0, v^{\prime \prime}\left(c_j\right)<0
$$
其中$c_i$是购买和消费的第$i$个品种的单位。注意,所有的品种以相同的方式进入她的效用函数,这意味着一个特定的品种本身无关紧要。对她来说,重要的是她所食用的品种的数量。这并不是什么不寻常的事情,因为在张伯伦的产品品种概念中,品种之间在表面上是有区别的。另一方面,喜欢变化的例子并不难找。典型的例子是服装材料。当我们买了一件以上的衬衫时,我们不太可能会买两件相同颜色的衬衫。我们可能对某种颜色有偏好,绿色、蓝色或灰色,但在这里,这是无关紧要的。尽管我们偏爱某一种颜色,但我们确实会把不同颜色的衬衫混搭在衣橱里,因为我们喜欢变化。在购买领带、鞋子、隐形眼镜、耳环、不同口味的冰淇淋以及诸如此类的东西时,也能明显看出他们对多样性的热爱

经济代写|国际经济学代写International Economics代考

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