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Product Differentiation: An Alternative To Cvds

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  • Yu-ter Wang

Abstract

By using a Cournot model where a domestic firm competes with a foreign firm in the domestic market, this paper suggests that, in addition to countervailing duty measures allowed by the World Trade Organization, product differentiation between the goods produced by the domestic and foreign firms could be considered as a way of eliminating foreign export subsidies. Copyright (c) 2008 The Author. Journal compilation (c) 2008 Economic Society of South Africa.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1813-6982.2008.00204.x
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Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

Volume (Year): 76 (2008)
Issue (Month): 3 (09)
Pages: 513-517

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Handle: RePEc:bla:sajeco:v:76:y:2008:i:3:p:513-517
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  1. Iwata, Kazumasa, 1989. "Comments 'differences in income elasticities and trends in real exchange rates' by Paul Krugman," European Economic Review, Elsevier, vol. 33(5), pages 1047-1049, May.
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  9. Besedes, Tibor & Prusa, Thomas J., 2006. "Product differentiation and duration of US import trade," Journal of International Economics, Elsevier, vol. 70(2), pages 339-358, December.
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  11. Meagher, Kieron J. & Zauner, Klaus G., 2004. "Product differentiation and location decisions under demand uncertainty," Journal of Economic Theory, Elsevier, vol. 117(2), pages 201-216, August.
  12. Pol Antràs, 2003. "Firms, Contracts, and Trade Structure," NBER Working Papers 9740, National Bureau of Economic Research, Inc.
  13. John Crespi & Stéphan Marette, 2002. "Generic Advertising and Product Differentiation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 691-701.
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  15. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
  16. Mónica Correa-López, 2007. "Price and Quantity Competition in a Differentiated Duopoly with Upstream Suppliers," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 469-505, 06.
  17. Yu-Ter Wang, 2004. "Countervailing Duties, Foreign Export Subsidies and Import Tariffs," The Japanese Economic Review, Japanese Economic Association, vol. 55(2), pages 153-161.
  18. Bandyopadhyay, Subhayu & Bandyopadhyay, Sudeshna C & Park, Eun-Soo, 2000. "Unionized Bertrand Duopoly and Strategic Export Policy," Review of International Economics, Wiley Blackwell, vol. 8(1), pages 164-74, February.
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Cited by:

  1. Witness Simbanegavi, 2010. "Product Differentiation - An Alternative To Cvds: A Comment," South African Journal of Economics, Economic Society of South Africa, vol. 78(2), pages 219-223, 06.
  2. Yu-Ter Wang, 2010. "The Profits Of Firms And Countervailing Duties In Vertically Related Markets," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(04), pages 749-756.

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