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Revisiting Oligopolistic Reaction: Are FDI Decisions Strategic Complements

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Author Info
Head, K.
Mayer, T.
Ries, J.

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Abstract

Knickerbocker (1973) introduced "oligopolistic Reaction" to explain why firms follow rivals into foreign markets. We develop a model that incorporates the central features of Knickerbocker's stroy - oligopoly, uncertainty, and risk aversion - to establish the conditions required to generate follow-the-leader behaviour.

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Publisher Info
Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Papiers d'Economie Mathématique et Applications with number 2001.49.

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Length: 24 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:pariem:2001.49

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Postal: France; Universite de Paris I - Pantheon- Sorbonne, 12 Place de Pantheon-75005 Paris, France
Web page: http://cermsem.univ-paris1.fr/
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Related research
Keywords: COMPETITION ; OLIGOPOLIES ; RISK;

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Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
R30 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - General

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