Oligopolies in Trade and Transportation: Implications for the Gains from Trade

Oligopolies in Trade and Transportation: Implications for the Gains from Trade

We show that bilateral bargaining between concentrated carriers and importers endogenizes transport costs in international shipping, yielding sizable markups but substantially mitigating the welfare costs of tariffs relative to standard iceberg models.

October 2024 · Enrico Cristoforoni, Marco Errico, Federico Rodari, Edoardo Tolva