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Endogenous Market Structures and Strategic Trade Policy

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Author Info
Federico Etro ()

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Abstract

We present a model where a society elects a parliament by voting for candidates belonging to two parties. The electoral rule determines the seats distribution between the two parties. We analyze two electoral rules, multidistrict majority and single-district proportional. In this framework, the policy outcome is simply a function of the number of seats parties take in the election. We prove that in both systems there is a unique pure strategy perfect equilibrium outcome. Finally, we compare the outcomes in the two systems.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper149.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 149.

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Length: 38 pages
Date of creation: Dec 2008
Date of revision: Dec 2008
Handle: RePEc:mib:wpaper:149

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Related research
Keywords: Trade policy; Export Subsidies; Competitive Devaluations; Endogenous Market Structures;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F31 - International Economics - - International Finance - - - Foreign Exchange

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