Abstract
In the previous two chapters we have developed two competitive models of trade to argue why and how time zone differences between two otherwise similar countries can also be engaged in trade. Here in this chapter we follow similar line of thought to use the standard monopolistically competitive framework to examine why time zone differences induced trade can also happen in imperfectly competitive market structures. The basic model in this chapter is in line with Paul Krugman’s pioneering work on monopolistic competition and trade.
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References
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Marjit, S. (2007). Trade theory and the role of time zones. International Review of Economics and Finance, 16(2), 153–160.
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Marjit, S., Mandal, B., Nakanishi, N. (2020). Time Zones and Trade in Monopolistic Competition. In: Virtual Trade and Comparative Advantage. Kobe University Monograph Series in Social Science Research. Springer, Singapore. https://doi.org/10.1007/978-981-15-3906-0_5
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DOI: https://doi.org/10.1007/978-981-15-3906-0_5
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