Endogenous Timing in Games of Commercial Policy
AbstractThis paper analyzes various equilibria associated with intervention in trade in the context of noncooperative policy games with endogenous timing. It is shown that, while the subgame perfect equilibria in quota games always involve sequential play, that is not necessarily the case in tariff games. One implication of the analysis is that, in contrast to existing theory, trade is not eliminated in quota games. Another implication is that quotas are not necessarily inferior to tariffs. The paper also examines the ways policy leaders and followers differ in their preferences over instruments and allows the choice over instruments to be determined endogenously. This paper analyses various equilibria associated with intervention in trade in the context on non-cooperative policy games with endogenous timing. It is shown that, while the subgame perfect equilibria in quota games always involve sequential play, that is not necessarily the case in tariff games. One implication of the analysis is that, in contrast to existing theory, trade is not eliminated in quota games. Another implication is that quotas are not necessarily inferior to tariffs. The paper also examines the ways policy leaders and followers differ in their preferences over instruments and allows the choice over instruments to be determined endogenously.
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 Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 27 (1994)
Issue (Month): 4 (November)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Young-Han Kim, 1999. "The Welfare Analysis of Trade Policies: The Optimal Government Intervention Timing under Incomplete Information," International Economic Journal, Taylor & Francis Journals, vol. 13(4), pages 53-70.
- Ilir Maçi & Kresimir Zigic, 2008.
"Competition Policy and Market Leaders,"
CERGE-EI Working Papers
wp375, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Kyung Hwan Baik & Todd Cherry & Stephan Kroll & Jason Shogren, 1999. "Endogenous Timing in a Gaming Tournament," Theory and Decision, Springer, vol. 47(1), pages 1-21, August.
- Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
- Bester, Helmut & Konrad, Kai A., 2004.
"Delay in contests,"
European Economic Review,
Elsevier, vol. 48(5), pages 1169-1178, October.
- Bester, Helmut & Konrad, Kai A., 2002. "Delay in contests," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-20, Social Science Research Center Berlin (WZB).
- Bester, Helmut & Konrad, Kai A, 2003. "Delay in Contests," CEPR Discussion Papers 3784, C.E.P.R. Discussion Papers.
- Kempf, Hubert & Rota-Graziosi, Grégoire, 2010. "Endogenizing leadership in tax competition," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 768-776, October.
- Larue, Bruno & Gervais, Jean-Philippe & Pouliot, Sebastien, 2007. "Should tariff-rate quotas mimic quotas?: Implications for trade liberalization under a supply management policy," The North American Journal of Economics and Finance, Elsevier, vol. 18(3), pages 247-261, December.
- Tsuyoshi Toshimitsu, 2013. "A Note on the Endogenous Timing of Tariff Policy in the Presence of a Time Lag between Production and Trade Decisions," Open Economies Review, Springer, vol. 24(2), pages 361-369, April.
- Jean-Philippe Gervais, 2001. "Production uncertainty and trade policy commitment," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(1), pages 1-21.
- Loginova, Oksana & Wang, X. Henry, 2013. "Mass customization in an endogenous-timing game with vertical differentiation," Economic Modelling, Elsevier, vol. 33(C), pages 164-173.
- repec:hal:journl:halshs-00492105 is not listed on IDEAS
- Constantinos Syropoulos, 2002. "On Tariff Preferences And Delegation Decisions In Customs Unions: A Heckscher--Ohlin Approach," Economic Journal, Royal Economic Society, vol. 112(481), pages 625-648, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
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.