In this paper we examine the interaction between the different modes of market access commitments in services (cross-border and establishment) market structure, and regulation. In this context, we focus on the impact of improved domestic market access for a foreign service provider on a domestic service market. We work with a model where the domestic industry is assumed to be imperfectly competitive and, as a result of domestic regulation, able to act as a cartel. We also examine the incentives for the domestic firms to accommodate the entry of the foreign firm by inviting it to join the cartel.

imperfect competition, market access, services trade, trade liberalization
Models of Trade with Imperfect Competition and Scale Economies (jel F12), Commercial Policy; Protection; Promotion; Trade Negotiations; International Organizations (jel F13), Multinational Firms; International Business (jel F23)
Tinbergen Institute Discussion Paper Series
Tinbergen Institute

François, J.F, & Wooton, I. (2000). Market Structure, Trade Liberalization and the GATS (No. TI 00-059/2). Tinbergen Institute Discussion Paper Series. Retrieved from