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Vol. 51, No. 4, pp. 321-336 (2000)

“Foreign Monopoly and Trade Policy under Segmented and Integrated Markets”
Jota Ishikawa (Graduate School of Economics, Hitotsubashi University)

This paper sets out a single monopoly model and examines the effects of various trade policies on domestic, foreign and world economies under both segmented and integrated markets. In the segmented--markets case, the spillover effects which stem from non--constant marginal costs are explicitly dealt with. In the integrated-markets case, trade policies are examined in two different notions of market integration. It is shown that the curvature of demand curves are crucial for results and that trade restriction taken by one country may benefit the other country and/or the world economy.