IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v27y1994i2p446-57.html
   My bibliography  Save this article

Voluntary Import Expansions and Voluntary Export Restraints in an Oligopoly Model with Capacity Constraints

Author

Listed:
  • Neil Bjorksten

Abstract

In a three-country generalization of the Kreps-Scheinkman (1983) duopoly model with price competition and capacity constraints, the author analyzes the effects of discriminatory voluntary import expansions and voluntary export restraints on equilibrium capacity and pricing decisions. Voluntary export restraints are shown to be bad for the exporting country, contradicting recent results in the literature by R. Harris (1985) and K. Krishna (1989). Voluntary import expansions are shown to decrease competition. Cases are analyzed where voluntary import expansions may actually lead to import contraction or to increases in efficiency in the home country.

Suggested Citation

  • Neil Bjorksten, 1994. "Voluntary Import Expansions and Voluntary Export Restraints in an Oligopoly Model with Capacity Constraints," Canadian Journal of Economics, Canadian Economics Association, vol. 27(2), pages 446-457, May.
  • Handle: RePEc:cje:issued:v:27:y:1994:i:2:p:446-57
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199405%2927%3A2%3C446%3AVIEAVE%3E2.0.CO%3B2-V
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krishna, Kala & Roy, Suddhasatwa & Thursby, Marie, 1998. "Implementing Market Access," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 529-544, November.
      • Kala Krishna & Suddhasatwa Roy & Marie Thursby, 1996. "Implementing Market Access," NBER Working Papers 5593, National Bureau of Economic Research, Inc.
      • Krishna, K & Roy, S & Thursby, M, 1996. "Implementaing Market Access," Papers 96-003, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
      • Krishna, K & Thursby, M & Roy, S, 1996. "Implementing Market Access," Papers 96-011, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
    2. Michael Funke & Adrian Wende, 2021. "The US-China Phase One Trade Deal: An Economic Analysis of the Managed Trade Agreement," CESifo Working Paper Series 8945, CESifo.
    3. Kujal, Praveen & García Díaz, Antón, 1998. "List princing and pure strategy outcomes in a bertrand edgeworth duopoly," UC3M Working papers. Economics 6089, Universidad Carlos III de Madrid. Departamento de Economía.
    4. Greaney, Theresa M., 1999. "Manipulating market shares: The indirect effects of voluntary import expansions (VIEs)," Japan and the World Economy, Elsevier, vol. 11(1), pages 95-113, January.
    5. Luca Lambertini & Arsen Palestini, 2018. "Voluntary Export Restraints in a Trade Model with Sticky Price: Linear and Nonlinear Feedback Solutions," Dynamic Games and Applications, Springer, vol. 8(3), pages 507-518, September.
    6. Qiu, Larry D. & Spencer, Barbara J., 2002. "Keiretsu and relationship-specific investment: implications for market-opening trade policy," Journal of International Economics, Elsevier, vol. 58(1), pages 49-79, October.
    7. Xiaopeng Yin, 2004. "Voluntary import expansions with non‐stationary demand," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(4), pages 1084-1096, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:27:y:1994:i:2:p:446-57. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.