Export restraints and horizontal product differentiation
AbstractWe consider the effects of export restraints on price competition in the Hotelling model of hor- izontal product differentiation. We characterise the Nash equilibrium for all possible values of the quota and compare our results with those of Krishna . We show that a foreign pro- ducer would choose a Voluntary Export Restraint in the vicinity of the Free Trade Equilibrium. In order to maximise domestic welfare, a government would not necessarily choose complete protectionism nor free trade.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1997082.
Date of creation: 01 Oct 1997
Date of revision:
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Hotelling; optimal quota; price competition;
Other versions of this item:
- Boccard, N. & Wauthy, Xavier, 1997. "Export Restraints and Horizontal Product Differentiation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1997024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 00 Sep 1997.
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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- WAUTHY, Xavier, .
"A note on research and development and voluntary export restrictions,"
CORE Discussion Papers RP
-1537, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Xavier Wauthy, 2002. "A note on Research and Development and Voluntary Export Restrictions"," Economics Bulletin, AccessEcon, vol. 6(1), pages 1-6.
- repec:ebl:ecbull:v:6:y:2002:i:1:p:1-6 is not listed on IDEAS
- Hernán Vallejo G, 2005.
"International Trade, Migration And Investment With Horizontal Product Differentiation And Free Entry And Exit Of Firms,"
002917, UNIVERSIDAD DE LOS ANDES-CEDE.
- Hernan Vallejo, 2006. "International trade, migration and investment with horizontal product differentiation and free entry and exit of firms," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO.
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