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Title: |
Trade Efficiency and Trade Points: Small
versus Large Players |
| Author: |
Lu, Laura;
Mourdoukoutas, Panos |
| Author
Affiliation: |
Long Island U |
| Source: |
International Economic Journal, Summer 1998, v. 12, no. 2, pp. 77-91 |
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Publication Date: |
Summer 1998 |
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Abstract: |
The impact of Trade Points on corporate
performance depends on assumptions about returns to scale, types of
games played, and size of gains in demand and revenues vis-a-vis costs.
Specifically: (i) in a world of profit-maximizing firms, when the
contribution of Trade Points to total revenues exceeds the additional
costs, Trade Points help both small firms and large ones with the size
of gains depending on the types of returns to scale and the size of
demand change; and (ii) whether to connect to Trade Points depends on
the type of games assumed and the size of demand gains vis-a-vis costs. |
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