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Export Subsidies And Switching Costs In An Imperfectly Competitive International Wheat Market

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  • Kallio, Panu K.S.
  • Abbott, Philip C.
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    Abstract

    Switching costs affect importer decisions, hence impacts of subsidies over time. Dynamic, game theoretic simulations of EU-US competition for Moroccan wheat imports suggest firms charge lower prices and governments award higher subsidies with switching costs. Policy under alternative institutional arrangements depends on the extent of switching costs, measured here econometrically.

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    File URL: http://purl.umn.edu/20789
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1998 Annual meeting, August 2-5, Salt Lake City, UT with number 20789.

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    Date of creation: 1998
    Date of revision:
    Handle: RePEc:ags:aaea98:20789

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    Related research

    Keywords: Crop Production/Industries; Industrial Organization; International Relations/Trade;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Sapir, André & Sekkat, M. Khalid, 1993. "Exchange Rate Regimes and Trade Prices: Does the EMS Matter?," CEPR Discussion Papers 810, C.E.P.R. Discussion Papers.
    2. Beggs, Alan & Klemperer, Paul, 1990. "Multi-Period Competition with Switching Costs," CEPR Discussion Papers 436, C.E.P.R. Discussion Papers.
    3. Philip C. Abbott & Panu K. S. Kallio, 1996. "Implications of Game Theory for International Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 738-744.
    4. Klemperer, Paul, 1992. "Competition When Consumers Have Switching Costs: An Overview," CEPR Discussion Papers 704, C.E.P.R. Discussion Papers.
    5. Ballard, Charles L & Shoven, John B & Whalley, John, 1985. "General Equilibrium Computations of the Marginal Welfare Costs of Taxes in the United States," American Economic Review, American Economic Association, vol. 75(1), pages 128-38, March.
    6. Gehlhar, Mark J. & Vollrath, Thomas L., 1997. "U.S. Export Performance in Agricultural Markets," Technical Bulletins 156793, United States Department of Agriculture, Economic Research Service.
    7. To, T., 1993. "Export subsidies and oligopoly with switching costs," Discussion Paper 1993-40, Tilburg University, Center for Economic Research.
    8. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    9. Neary, J Peter, 1991. "Cost Asymmetries in International Subsidy Games: Should Governments Help Winners or Losers?," CEPR Discussion Papers 560, C.E.P.R. Discussion Papers.
    10. Johnson, Martin & Mahe, Louis & Roe, Terry, 1993. "Trade compromises between the European community and the United States: An interest group-game theory," Journal of Policy Modeling, Elsevier, vol. 15(2), pages 199-222, April.
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    Cited by:
    1. Young, Linda M. & Abbott, Philip C. & Leetmaa, Susan E., 2001. "Export Competition: Issues And Options In The Agricultural Negotiations," Commissioned Papers 14624, International Agricultural Trade Research Consortium.

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