Strategic trade policy with endogenous choice of quality and asymmetric costs
نویسندگان
چکیده
منابع مشابه
Strategic Trade Policy under Isoelastic Demand and Asymmetric Production Costs
We demonstrate that whether a good of a rival firm is a strategic substitute or astrategic complement is endogenously determined when the market inverse demand is hyperbolic. The relative competitiveness, which is expressed by the ratio of firms’ marginal costs, is the key determinant. We derive optimal trade policies, which are dependant upon the firms’ form of strategic action. In particular,...
متن کاملStrategic Trade Policy with Polynomial Costs
ÿWe investigate how the superiority of the optimal subsidy or tariff in an international Cournot oligopoly depends on the production technology used in the industry, an interesting issue that has not been analyzed in the literature. We establish that the welfare superiority of the optimal subsidy or tariff depends on the relative steepness of the firms’ common marginal cost curve: when it is re...
متن کاملOptimal Strategic Trade Policy under Asymmetric Information
When cost is private information in the Brander{Spencer model, the home government is confronted by a decision of choosing between two policy options: a menu of policies and a uniform policy. The former induces separation and so reveals the cost information to the foreign competitors. The latter helps the weak ̄rm by concealing the cost information. The main result from this study is that polic...
متن کاملStrategic Environmental Policy and International Trade in Asymmetric Oligopoly Markets
This paper examines optimal cooperative and non-cooperative environmental taxes for the case in which a polluting input is used to produce an internationally-traded finished product. The model allows for terms-of-trade effects under oligopoly and employs a general specification of the environmental damage function that encompasses special cases of local, global, and transboundary externalities....
متن کاملAsymmetric Trade Costs: Agricultural Trade amongDeveloping andDevelopedCountries
In this article, the reasonswhydeveloping countries trade fewer agricultural products than developed countries are analyzed. Based on earlier findings that low trade volume in the agricultural sector is due to high trade costs, the focus is on evaluating the extent to which bilateral trade costs in the agricultural sector differ among trading partners. Using a neo-Ricardian trade model, the res...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of International Economics
سال: 2002
ISSN: 0022-1996
DOI: 10.1016/s0022-1996(01)00118-0