The DOI matches its Crossref record; 44 of the 44 references it cites were found in a registry or an index.
Market Penetration Costs and the New Consumers Margin in International Trade
Abstract
This paper develops a novel theory of marketing costs within a trade model with product differentiation and heterogeneity in firm productivities. A firm enters a market if it is profitable to incur the marginal cost to reach a single consumer. It then faces an increasing marginal penetration cost to access additional consumers. The model, therefore, can reconcile the observed positive relationship between entry and market size with the existence of many small exporters in each exporting market. Comparative statics of trade liberalization predict a large increase in trade for goods with positive but low volumes of previous trade.
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Citations
Cites
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Melitz, M. J. (2003) · Econometrica · doi:10.1111/1468-0262.00467 · Cited by 12,309
Stigler, G. J. (1961) · Journal of Political Economy · doi:10.1086/258464 · Cited by 5,155
Technology, Geography, and Trade
Eaton, J., & Kortum, S. (2002) · Econometrica · doi:10.1111/1468-0262.00352 · Cited by 4,485
Scale Economies, Product Differentiation, and the Pattern of Trade
(1990) · Rethinking International Trade · doi:10.7551/mitpress/5933.003.0005 · Cited by 4,464
Export Versus FDI with Heterogeneous Firms
Helpman, E., Melitz, M. J., & Yeaple, S. R. (2004) · American Economic Review · doi:10.1257/000282804322970814 · Cited by 4,030
(1979) · American Economic Review · Cited by 3,564
Stigler, G. J. (1976) · Lecture Notes in Economics and Mathematical Systems · doi:10.1007/978-3-642-51565-1_86 · Cited by 3,287
Plants and Productivity in International Trade
Bernard, A. B., Eaton, J., Jensen, J. B., & Kortum, S. (2003) · American Economic Review · doi:10.1257/000282803769206296 · Cited by 2,980
Market Size, Trade, and Productivity
MELITZ, M. J., & OTTAVIANO, G. I. P. (2008) · Review of Economic Studies · doi:10.1111/j.1467-937x.2007.00463.x · Cited by 2,864
Entry, Exit, and firm Dynamics in Long Run Equilibrium
Hopenhayn, H. A. (1992) · Econometrica · doi:10.2307/2951541 · Cited by 2,857
Cited by
New Trade Models, Same Old Gains?
Arkolakis, C., Costinot, A., & Rodríguez-Clare, A. (2012) · American Economic Review · doi:10.1257/aer.102.1.94 · Cited by 1,707
Self-citationEstimates of the Trade and Welfare Effects of NAFTA
Caliendo, L., & Parro, F. (2015) · The Review of Economic Studies · doi:10.1093/restud/rdu035 · Cited by 1,518
Trade Theory with Numbers: Quantifying the Consequences of Globalization
Costinot, A., & Rodríguez-Clare, A. (2014) · Handbook of International Economics · doi:10.1016/b978-0-444-54314-1.00004-5 · Cited by 624
Trade Theory with Numbers: Quantifying the Consequences of Globalization
Costinot, A., & Rodríguez-Clare, A. (2013) · doi:10.3386/w18896 · Cited by 501
The Life Cycle of Plants in India and Mexico *
Hsieh, C.-T., & Klenow, P. J. (2014) · The Quarterly Journal of Economics · doi:10.1093/qje/qju014 · Cited by 436
Metadata
- Authors
- Arkolakis, C.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 2010-12
- Volume
- 118
- Issue
- 6
- Pages
- 1151-1199
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W2167495637
- Cited by
- 699
- References
- 44
- FWCI
- 107.66
- Type
- journal article
- Language
- en
- Open access
- closed
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Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
