On the Formation of Bilateral Free Trade Agreements in a Four Country Model

Topic: On the Formation of Bilateral Free Trade Agreements in a Four Country Model

Time: June 29th (Friday), 3: 15 - 6: 15 PM

Venue: Meeting Room 105, WENLAN

Speaker:  Wang Xinghe

Wang Xinghe Professor in University of Missouri, has published more than 60 papers in internationally famous journals such as:  Economic Theory, International Journal of Industrial Organization, Journal of Macroeconomics, Journal of Mathematical Economics, Journal of Economics and Management Strategy, Journal of Economics, Review of Industrial Organization, Journal of Regional Science, Economics Letters.

Research Interests:

Microeconomics, Industrial Organization, Game Theory, Mathematical Economics

Abstract:

This paper studies the formation of two-country free trade agreements (FTAs) in a four country model. Each country has a single firm. All firms produce a homogeneous product and play a Cournot quantity game in each market they compete. The four countries are divided into two types with each type having the same market size and the same cost of production (i.e., the same technology). Both symmetric FTAs between two countries of the same type and asymmetric FTAs between two countries of different types are investigated.