Strategic Trade Policy Under Incomplete Information
AbstractThis paper examines equilibrium trade policies when firms have better information than governments about the profitability of the industry. Contrary to the intuition that the policy makers' lack of information should reduce their incentives to engage in strategic trade intervention, the analysis suggests that information asymmetries may increase trade policy distortions in equilibrium, and ultimately worsen the Prisoner's Dilemma between governments.
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Bibliographic InfoPaper provided by Princeton, Woodrow Wilson School - Public and International Affairs in its series Papers with number 189.
Length: 28 pages
Date of creation: 1997
Date of revision:
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Postal: PRINCETON UNIVERSITY, WOODROW WILSON SCHOOL OF PUBLIC AND INTERNATIONAL AFFAIRS, PRINCETON NEW- JERSEY 08542 U.S.A.
Phone: (609) 258-4800
Web page: http://www.wws.princeton.edu/
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EXPORTS ; TRADE POLICY ; ASYMMETRIC INFORMATION;
Other versions of this item:
- Maggi, Giovanni, 1999. "Strategic Trade Policy under Incomplete Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 571-94, August.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- Creane, Anthony & Miyagiwa, Kaz, 2008.
"Information and disclosure in strategic trade policy,"
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- Anthony Creane & Kaz Miyagiwa, 2007. "Information and Disclosure in Strategic Trade Policy," ISER Discussion Paper 0705, Institute of Social and Economic Research, Osaka University.
- Anthony Creane & Kaz Miyagiwa, 2005. "Information and Disclosure in Strategic Trade Policy," Emory Economics 0530, Department of Economics, Emory University (Atlanta).
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- Ionascu, Delia & Zigic, Kresimir, 2001. "Free Trade versus Strategic Trade as a Choice Between Two 'Second-best' Policies: A Symmetric versus Asymmetric Information Analysis," CEPR Discussion Papers 2928, C.E.P.R. Discussion Papers.
- Mälkönen, Ville, 2006. "Optimal forest conservation: The role of green-image demand and investments," Journal of Forest Economics, Elsevier, vol. 12(1), pages 51-73, March.
- Simon Schropp, 2007. "Revisiting the "Compliance-vs.-Rebalancing" Debate in WTO Scholarship a Unified Research Agenda," IHEID Working Papers 29-2007, Economics Section, The Graduate Institute of International Studies, revised Dec 2007.
- Sun, Ning & Yao, Hongxin, 2011. "Manipulable behavior in international trade," Economic Modelling, Elsevier, vol. 28(1-2), pages 60-66, January.
- Furusawa, Taiji & Higashida, Keisaku & Ishikawa, Jota, 2003. "What information is needed for welfare-enhancing policies under international oligopoly?," Japan and the World Economy, Elsevier, vol. 15(1), pages 31-46, January.
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