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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