Consumer-benefiting transport cost: The role of product innovation in a vertical structure

Kazuhiro Takauchi and Tomomichi Mizuno

No 1911, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: Contrary to the standard belief, we show that a positive transport cost can maximize consumer's surplus if exporting firms engage in product R&D and use their domestic inputs.

Pages: 10 pages
Date: 2019-11
New Economics Papers: this item is included in nep-com and nep-tre
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Related works:
Journal Article: Consumer-Benefiting Transport Costs: The Role of Product Innovation in a Vertical Structure (2024)
Working Paper: Consumer-benefiting transport cost: The role of product innovation in a vertical structure (2020)
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