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Voluntary Export Restraints under Imperfect Competition

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  • Masayuki Okawa

Abstract

The paper studies the effects of a change in the level of voluntary export restraints (VERs) on the behavior of the domestic firm and on the welfare of the importing country. The author constructs a simple two‐country Cournot duopoly model in which each firm produces a homogeneous good at constant marginal cost. It is shown that the results obtained by predecessors based on linear demand, constant‐elasticity demand, strategic substitutes and so forth all emerge as special cases.

Suggested Citation

  • Masayuki Okawa, 2004. "Voluntary Export Restraints under Imperfect Competition," Review of International Economics, Wiley Blackwell, vol. 12(1), pages 138-150, February.
    • Handle: RePEc:bla:reviec:v:12:y:2004:i:1:p:138-150
    DOI: 10.1111/j.1467-9396.2004.00436.x
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    Cited by:

    1. Fuhmei Wang, 2011. "Who Bears the Burden of Voluntary Export Restraints?," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(3), pages 216-231.
    2. Chen, Fang-Yueh, 2023. "Trade warfare and sanctions in vertically related markets," Economic Modelling, Elsevier, vol. 121(C).

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