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Strategic Trade Policy under Uncertainty: Sufficient Conditions for the Optimality of Ad Valorem, Specific and Quadratic Trade Taxes

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  • Grant, Simon
  • Quiggin, John

Abstract

In most previous work on strategic trade policy, the form of government intervention has been prescribed in advance. In this paper, the authors apply a solution concept discussed by P. D. Klemperer and M. A. Meyer (1989) for games in which the strategy space consists of the class of all (non-state-contingent) price quantity schedules. They examine a series of specific assumptions on demand and supply conditions and derive the associated equilibrium trade policies. The authors derive welfare implications for all cases examined. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Bibliographic Info

Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 38 (1997)
Issue (Month): 1 (February)
Pages: 187-203

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Handle: RePEc:ier:iecrev:v:38:y:1997:i:1:p:187-203

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Cited by:
  1. Appelbaum, Elie & Melatos, Mark, 2012. "How Does Uncertainty Affect the Choice of Trade Agreements?," Working Papers 2012-08, University of Sydney, School of Economics.
  2. Vives, Xavier, 2008. "Strategic supply function competition with private information," IESE Research Papers D/774, IESE Business School.
  3. Menezes, Flavio & Quiggin, John, 2013. "Inferring the strategy space from market outcomes," Risk and Sustainable Management Group Working Papers 151206, University of Queensland, School of Economics.
  4. Kala Krishna & Torben Tranæs, 1999. "Efficient Competition with Small Numbers - with Applications to Privatisation and Mergers," CIE Discussion Papers 1999-01, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  5. Elie Appelbaum & Mark Melatos, 2014. "Option Values and the Choice of Trade Agreements," Working Papers 2014_1, York University, Department of Economics.

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