Assisting Domestic Industries under International Oligopoly: The Relevance of the Nature of Competition to Optimal Policies
AbstractOptimal trade and industrial policies are derived for a home market that is supplied by a domestic firm and a foreign firm. The optimal policy combination can be quite sensitive to the nature of the duopoly's competition. For example, for some cost and demand s tructures, the optimal policy under Cournot competition consists of a domestic production tax and a tariff, but that under Bertrand compet ition consists of a production subsidy and free trade. Copyright 1988 by American Economic Association.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 78 (1988)
Issue (Month): 4 (September)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Colacicco, Rudy, 2012.
"Strategic Trade Policy in General Oligopolistic Equilibrium,"
38118, University Library of Munich, Germany.
- Rudy Colacicco, 2013. "Strategic Trade Policy in General Oligopolistic Equilibrium," FIW Working Paper series 126, FIW.
- repec:ebl:ecbull:v:6:y:2006:i:6:p:1-8 is not listed on IDEAS
- Desquilbet, Marion & Guyomard, Herve, 1999. "Public Policy In Vertically Related Markets: A Cournot Oligopoly-Oligopsony Model," 1999 Annual meeting, August 8-11, Nashville, TN 21561, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Stahl, Dale O. & Turunen-Red, Arja H., 1995. "Tariff games: Cooperation with random variation in political regimes," European Journal of Political Economy, Elsevier, vol. 11(2), pages 215-238, June.
- Furusawa, Taiji & Higashida, Keisaku & Ishikawa, Jota, 2003. "What information is needed for welfare-enhancing policies under international oligopoly?," Japan and the World Economy, Elsevier, vol. 15(1), pages 31-46, January.
- Sorgard, Lars, 1997. "Domestic merger policy in an international oligopoly: The Nordic market for electricity," Energy Economics, Elsevier, vol. 19(2), pages 239-253, May.
- repec:ebl:ecbull:v:6:y:2007:i:21:p:1-11 is not listed on IDEAS
- Haufler, Andreas & Pflüger, Michael, 2003.
"Market structure and the taxation of international trade,"
Discussion Papers in Economics
106, University of Munich, Department of Economics.
- Andreas Haufler & Michael Pflüger, 2003. "Market Structure and the Taxation of International Trade," CESifo Working Paper Series 1080, CESifo Group Munich.
- Andreas Haufler & Michael Pflüger, 2003. "Market Structure and the Taxation of International Trade," Discussion Papers of DIW Berlin 370, DIW Berlin, German Institute for Economic Research.
- Mark Herander, 1993. "Optimal trade policy in the presence of changing market structure," Open Economies Review, Springer, vol. 4(3), pages 235-245, September.
- Zigic, Kresimir, 2000. "Strategic trade policy, intellectual property rights protection, and North-South trade," Journal of Development Economics, Elsevier, vol. 61(1), pages 27-60, February.
- Toru Kikuchi, 1998. "Strategic Export Policy in a Differentiated Duopoly: A Note," Open Economies Review, Springer, vol. 9(4), pages 315-325, October.
- Dominik Egli & Frank Westermann, 2004.
"Optimal Tariffs and Subsidies and Changes in Market Structure,"
Review of Development Economics,
Wiley Blackwell, vol. 8(3), pages 406-412, 08.
- Dominik Egli & Frank Westermann, 2000. "Optimal Tariffs and Subsidies And Changes in Markets Structure," CESifo Working Paper Series 369, CESifo Group Munich.
- William Milberg, 1999. "The Rhetoric of Policy Relevance in International Economics," Macroeconomics 9904009, EconWPA.
- Mario Marazzi, 2002. "On the fragility of gains from trade under continuously differentiated bertrand competition," International Finance Discussion Papers 735, Board of Governors of the Federal Reserve System (U.S.).
- Dinopoulos, Elias & Lewis, Tracy R. & Sappington, David E. M., 1995. "Optimal industrial targeting with unknown learning-by-doing," Journal of International Economics, Elsevier, vol. 38(3-4), pages 275-295, May.
- Bhattacharjea, Aditya, 1995. "Strategic tariffs and endogenous market structures: Trade and industrial policies under imperfect competition," Journal of Development Economics, Elsevier, vol. 47(2), pages 287-312, August.
- David Collie & Roger Clarke, 2006.
"Export Taxes under Bertrand Duopoly,"
AccessEcon, vol. 6(6), pages 1-8.
- Hiroshi Kurata, 2007. "Foreign equity caps under two types of competition: Bertrand and Cournot," Economics Bulletin, AccessEcon, vol. 6(21), pages 1-11.
- Klimenko, Mikhail M., 2009. "Policies and international trade agreements on technical compatibility for industries with network externalities," Journal of International Economics, Elsevier, vol. 77(2), pages 151-166, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.