Security and Price Arbitrage
AbstractWe examine the effect of international price arbitrage on the effectiveness of unilateral export controls. The restriction on the quality of exports of security sensitive products limits the outside option of domestic customers: if the product available on the international market is of low quality the firm can charge a high price to domestic customers for its latest technology. This effect leads the government to set looser export controls on security sensitive products.
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Bibliographic InfoPaper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0002.
Date of creation: Mar 2000
Date of revision:
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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
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Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-03-20 (All new papers)
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