International capacity choice and national market games
AbstractA series of models are developed in which international trade is modelled as a two-stage game between firms in two countries. At the first stage firms choose their productive capacity. At the second stage different types of market game are played. The most interesting case is that in which firms play a separate price game in each national market, given their worldwide capacity levels. It is established that (i) firms use capacity strategically, in order to manipulate the distribution of rivals' output between markets; (ii) the volume of intra-industry trade is intermediate between the two cases most extensively studied in the trade literature (integrated- and segmented-market Cournot equilibria); and (iii) countries gain from small import tariffs and export subsidies, but these gains are less than in the case of segmented markets and a Cournot equilibrium.
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.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Economics.
Volume (Year): 29 (1990)
Issue (Month): 1-2 (August)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505552
Other versions of this item:
- Venables, Anthony J., 1988. "International Capacity Choice and National Market Games," CEPR Discussion Papers 277, C.E.P.R. Discussion Papers.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Donald Wright, .
"Optimal Patent Breadth and Length with Costly Imitation,"
95/7, Department of Economics, University of York.
- Wright, Donald J., 1999. "Optimal patent breadth and length with costly imitation," International Journal of Industrial Organization, Elsevier, vol. 17(3), pages 419-436, April.
- Anderson, S. & Schmitt, N. & Thisse, J.F., 1992.
"Who Benifits from Antidumping Legislation?,"
dp92-12, Department of Economics, Simon Fraser University.
- Goo, Youngwan & Park, Hyun, 2007. "Economic growth and convergence with international differences in technology," Journal of Macroeconomics, Elsevier, vol. 29(1), pages 145-168, March.
- J Peter Neary & Joe Tharakan, 2005.
"Endogenous Mode of Competition in General Equilibrium,"
200526, School Of Economics, University College Dublin.
- Neary, J Peter & Tharakan, Joe, 2006. "Endogenous Mode of Competition in General Equilibrium," CEPR Discussion Papers 5943, C.E.P.R. Discussion Papers.
- Ganslandt, Mattias, 2001.
"Strategic Investment and Market Integration,"
Working Paper Series
560, Research Institute of Industrial Economics.
- Ganslandt, M., 2001. "Strategic Investment and Market Integration," Research Institute of Industrial Economics Working Papers 560, Research Institute of Industrial Economics (IFN).
- Conconi, P., 2000. "Trade Bloc Formation Under Imperfect Competition," The Warwick Economics Research Paper Series (TWERPS) 571, University of Warwick, Department of Economics.
- Alho, Kari, 1990. "Identification of Barriers in International Trade under Imperfect Competition," Working Paper Series 283, Research Institute of Industrial Economics.
- Neary, J Peter, 2002.
"Foreign Direct Investment and the Single Market,"
CEPR Discussion Papers
3419, C.E.P.R. Discussion Papers.
- J Peter Neary, 2001. "Foreign Direct Iinvestment and the Single Market," Working Papers 200124, School Of Economics, University College Dublin.
- J. Peter Neary, 2001. "Foreign Direct Investment and the Single Market," Development Working Papers 160, Centro Studi Luca d\'Agliano, University of Milano.
- Linda Hunter & James R. Markusen & Thomas F. Rutherford, 1991.
"Trade Liberalization in a Multinational-Dominated Industry: A Theoretical and Applied General-Equilibrium Analysis,"
NBER Working Papers
3679, National Bureau of Economic Research, Inc.
- Linda Hunter & James R. Markusen & Thomas F. Rutherford, 1991. "Trade liberalization in a multinational-dominated industry: a theoretical and applied general equilibrium analysis," Proceedings, Federal Reserve Bank of Dallas, pages 39-42.
- Wegberg, M.J.A.M. & Witteloostuijn, A. van, 1992. "Credible entry threats into contestable markets: a multimarket model of contestability," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5373412, Tilburg University.
- Naranjo, Alberto J., 2010. "Spillover effects of domestic law enforcement policies," International Review of Law and Economics, Elsevier, vol. 30(3), pages 265-275, September.
- José Méndez Naya & Luciano Méndez Naya, 2001. "Subsidios a la producción y efectos derivados de la formación de una unión aduanera," Estudios de Economia, University of Chile, Department of Economics, vol. 28(2 Year 20), pages 249-265, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.