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Endogenous Lobbying Positions

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Author Info
Larry D. Qiu

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Abstract

This paper develops a two-country, two-firm model to study equilibrium lobbying positions in intra-industry trade. A firm chooses either a protectionist position or a free-trade position. The model predicts that taking the free-trade lobbying position is an efficient firm's dominant strategy. If two firms have high costs (or when the demand is very weak), there exist two equilibria: either both firms take the free-trade position or both take the protectionist lobbying position. In other cases, both firms taking the free-trade lobbying position is a unique equilibrium. Copyright © 2008 The Author. Journal compilation © 2008 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9396.2008.00769.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 16 (2008)
Issue (Month): 4 (09)
Pages: 641-653
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Handle: RePEc:bla:reviec:v:16:y:2008:i:4:p:641-653

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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This page was last updated on 2009-11-22.


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