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Strategic Export Policy in a Differentiated Duopoly: A Note

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  • Toru Kikuchi

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Abstract

The purpose of this paper is to further explore how optimal export policies are affected by the nature of oligopolistic competition and the structure of demand. It is shown that (1) the more cost-competitive the home firm is, the higher the optimal level of export intervention becomes; (2) as the goods become better complements, the optimal level of export intervention increases; (3) the nature of the effects of strategic export policies on foreign firms depends on both the mode of competition and the structure of demand. Copyright Kluwer Academic Publishers 1998

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File URL: http://hdl.handle.net/10.1023/A:1008333030623
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Bibliographic Info

Article provided by Springer in its journal Open Economies Review.

Volume (Year): 9 (1998)
Issue (Month): 4 (October)
Pages: 315-325

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Handle: RePEc:kap:openec:v:9:y:1998:i:4:p:315-325

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Web page: http://www.springerlink.com/link.asp?id=100323

Related research

Keywords: strategic export policy; substitutes and complements; Cournot and Bertrand competition;

References

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  1. Neary, J. Peter, 1994. "Cost asymmetries in international subsidy games: Should governments help winners or losers?," Journal of International Economics, Elsevier, vol. 37(3-4), pages 197-218, November.
  2. Vives, Xavier, 1985. "On the efficiency of Bertrand and Cournot equilibria with product differentation," Journal of Economic Theory, Elsevier, vol. 36(1), pages 166-175, June.
  3. Eaton, Jonathan & Grossman, Gene M, 1986. "Optimal Trade and Industrial Policy under Oligopoly," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 383-406, May.
  4. Cheng, Leonard K, 1988. "Assisting Domestic Industries under International Oligopoly: The Relevance of the Nature of Competition to Optimal Policies," American Economic Review, American Economic Association, vol. 78(4), pages 746-58, September.
  5. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
  6. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455 Elsevier.
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Cited by:
  1. Clarke, Roger & Collie, David R., 2006. "Export Taxes under Bertrand Duopoly," Cardiff Economics Working Papers E2006/15, Cardiff University, Cardiff Business School, Economics Section.
  2. repec:ebl:ecbull:v:6:y:2006:i:6:p:1-8 is not listed on IDEAS

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