Monopolistic competition, intra-industry trade and direct lobbying

The case of the transatlantic business dialogue

Abstract

This paper analyses the influence monopolistic competition and intraindustry trade (IIT) exert on trade policy lobbying. More specifically, it concentres on how firms producing in monopolistic competition and trading in IIT act in the political arena: the argument is that the type of production and accordingly, the type of trade where a firm is embedded determine its lobbying strategies.