Sunk costs and cartel formation: theory and application to the dyestuff industry

Article Abstract:

A significant determinants of cartel information may be sunk costs and entry, which are complementary to the usual cartel stability conditions. Low setup costs may lessen the possibility of cartel formation since established firms have small chances of altering their behavior without attracting entry. Scope for cartelization grew when firms predicted a marked reduction in profits at the end of World War I, since the industry has a considerable degree of asset specificity.

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How domestic demand shapes the pattern of international trade

Article Abstract:

An attempt to identify the key demand characteristics that are expected to influence the pattern of trade among countries and present some underlying reasons behind the differences in demand conditions among countries is presented. Research findings show some interesting approaches in international trade theory that may be extended. Several methods for capturing the described effects from domestic demand may be developed.

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Comparative home-market advantage: an empirical analysis of British and American exports

Article Abstract:

The hypothesis that a country exports relatively more of those goods for which it has a relatively larger home markets, are derived and analyzed. The relationship between home-market size and export structure, which is more important for the fixed cost industries, is highlighted.

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