Export Restraints and Horizontal Product Differentiation
AbstractWe consider the effects of export restraints on price competition in the Hotelling model of horizontal differentiation. We characterize the Nash equilibrium for all possible values of the quota and compare our results with those of Krishna (89). We show that a foreign producer would choose a VER in the vicinity of the Free Trade Equilibrium. In order to maximize domestic welfare, a government would necessarily choose complete protectionism nor Free Trade.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 1997024.
Date of creation: 01 Jan 1997
Date of revision: 00 Sep 1997
Hotelling; optimal quota; price competition;
Other versions of this item:
- BOCCARD, Nicolas & WAUTHY, Xavier, 1997. "Export restraints and horizontal product differentiation," CORE Discussion Papers 1997082, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-02-10 (All new papers)
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- 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.
- Hernán Vallejo G, 2005. "International Trade, Migration And Investment With Horizontal Product Differentiation And Free Entry And Exit Of Firms," DOCUMENTOS CEDE 002917, UNIVERSIDAD DE LOS ANDES-CEDE.
- repec:ebl:ecbull:v:6:y:2002:i:1:p:1-6 is not listed on IDEAS
- Wauthy, Xavier, 2002.
"A note on Research and Development and Voluntary Export Restrictions,"
Open Access publications from UniversitÃ© catholique de Louvain
info:hdl:2078.1/23137, Université catholique de Louvain.
- Xavier Wauthy, 2002. "A note on Research and Development and Voluntary Export Restrictions"," Economics Bulletin, AccessEcon, vol. 6(1), pages 1-6.
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