Export Restraints With Imperfect Competition: A Selective Survey
AbstractThis paper is a selective survey of the work on the effects of export restraints with imperfect competition. Although there are a number of excellent surveys of strategic trade theory as a whole. not much attention is paid in these to the effects of export restraints per se. The large and growing literature in this area is explicitly game theoretic and contains a wide variety of models which often yield different results. For this reason. the literature in this area can be difficult to follow. This survey provides a stylized overview of the area which serves as a guide to the work. Short run effects are contrasted to long run effects. The short run effects usually studied are on pricing behavior. Long run effects are multidimensional. These include effects on quality choice and investment which often work in the opposite direction to the short run effects.
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