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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 277.
Date of creation: Oct 1988
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- Venables, Anthony J., 1990. "International capacity choice and national market games," Journal of International Economics, Elsevier, vol. 29(1-2), pages 23-42, August.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Anderson, S. P. & Schmitt, N. & Thisse, J.-F., .
"Who benefits from antidumping legislation?,"
CORE Discussion Papers RP
-1146, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Schmitt, Nicolas & Thisse, Jacques-François, 1992. "Who Benefits from Antidumping Legislation?," CEPR Discussion Papers 731, C.E.P.R. Discussion Papers.
- Anderson, S. & Schmitt, N. & Thisse, J.F., 1992. "Who Benifits from Antidumping Legislation?," Discussion Papers dp92-12, Department of Economics, Simon Fraser University.
- Neary, J Peter & Tharakan, Joe, 2006.
"Endogenous Mode of Competition in General Equilibrium,"
CEPR Discussion Papers
5943, C.E.P.R. Discussion Papers.
- J Peter Neary & Joe Tharakan, 2005. "Endogenous Mode of Competition in General Equilibrium," Working Papers 200526, School Of Economics, University College Dublin.
- 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.
- Donald Wright, . "Optimal Patent Breadth and Length with Costly Imitation," Discussion Papers 95/7, Department of Economics, University of York.
- Ganslandt, Mattias, 2001. "Strategic Investment and Market Integration," Working Paper Series 560, 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 Investment and the Single Market," Development Working Papers 160, Centro Studi Luca d\'Agliano, University of Milano.
- J Peter Neary, 2001. "Foreign Direct Iinvestment and the Single Market," Working Papers 200124, School Of Economics, University College Dublin.
- Linda Hunter & James R. Markusen & Thomas F. Rutherford, 1991.
"Trade liberalization in a multinational-dominated industry: a theoretical and applied general equilibrium analysis,"
Federal Reserve Bank of Dallas, pages 39-42.
- 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.
- Conconi, P., 2000. "Trade Bloc Formation Under Imperfect Competition," The Warwick Economics Research Paper Series (TWERPS) 571, University of Warwick, Department of Economics.
- 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.
- Alho, Kari, 1990. "Identification of Barriers in International Trade under Imperfect Competition," Working Paper Series 283, Research Institute of Industrial Economics.
- 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.
- NEARY, J. Peter & THARAKAN, Joe, 2011.
"International trade with endogenous mode of competition in general equilibrium,"
CORE Discussion Papers
2011038, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Neary, J. Peter & Tharakan, Joe, 2012. "International trade with endogenous mode of competition in general equilibrium," Journal of International Economics, Elsevier, vol. 86(1), pages 118-132.
- Peter Neary & Joe Tharakan, 2011. "International Trade with Endogenous Mode of Competition in General Equilibrium," CREPP Working Papers 1111, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
- NEARY, J. Peter & THARAKAN, Joe, . "International trade with endogenous mode of competition in general equilibrium," CORE Discussion Papers RP -2430, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.