Imperfect Substitutes and Trade Policy under Cournot Duopoly
AbstractWe study a duopoly model of trade and its trade policy. The two country trade model to be discussed is the following. There are three goods (0,1 and 2). Good 0 is produced by perfectly competitive firms, and the good 1 and the good 2 are imperfect substitutes, each produced by a home and a foreign monopolist respectively. The good 1 and the good 2 are produced with nonlinear cost functions. Each monopolist behaves in Cournot fashion. The home country can consider an import tariff and / or an export subsidy as policy instruments. In this paper we shall consider the uniqueness of the general equilibrium solution and the policy effects of tariffs and subsidy. Comparative static analysis in terms of an import tariff and an export subsidy is presented. The paper also considers the home country's policy implications of an import tariff and an export subsidy on production, trade, and consumption of each country's good, and on the welfare of each country and the world as a whole.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 84.
Length: 29 pages
Date of creation: Sep 1997
Date of revision:
Contact details of provider:
Postal: 2-1 Rokkodai, Nada, Kobe 657-8501 JAPAN
Phone: +81-(0)78 803 7036
Fax: +81-(0)78 803 7059
Web page: http://www.rieb.kobe-u.ac.jp/index-e.html
More information through EDIRC
Trade; Duopolies; General equilibrium;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University).
If references are entirely missing, you can add them using this form.