Working Paper
Fixed Transport Costs and International Trade
Didier Laussel, Raymond Riezman
CESifo, Munich, 2006
CESifo Working Paper No. 1764
CESifo, Munich, 2006
CESifo Working Paper No. 1764
![](https://cesifo.org/DocImg/cesifo1_wp1764.jpg?c=1689236960)
We develop a simple two country model of international trade that assumes that there is a fixed cost of doing international trade. We show that this leads to multiple equilibria that can be Pareto-ranked. We examine the stability properties of these equilibria.