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Strategic Trade Policy in Bargaining over Managerial Delegation Competition

Author

Listed:
  • Leonard F. S. Wang

    (Department of Applied Economics, National University of Kaohsiung)

  • Wei Zhao

    (Jinhe Center for Economic Research, Xi¡¦an Jiaotong University)

  • Ya -Chin Wang

    (Department of Finance and Banking, Kun Shan University)

Abstract

In this paper, we assess the influence of the generalized Nash bargaining model on strategic trade policies. In particular, how the trade policy and the bargaining process over managerial contract are strategically connected within the context of bargaining over the sales delegation model is analyzed. We explore the policy impacts in two different models: the export rivalry model and the import-competing model, and show that the introduction of managers' bargaining process leads to a decrease in the export subsidy and optimal tariff in different models.

Suggested Citation

  • Leonard F. S. Wang & Wei Zhao & Ya -Chin Wang, 2008. "Strategic Trade Policy in Bargaining over Managerial Delegation Competition," Economics Bulletin, AccessEcon, vol. 6(38), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-08f10023
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    References listed on IDEAS

    as
    1. Yasuhiko Nakamura, 2008. "Bargaining over Managerial Contracts in Delegation Games: The Quadratic Cost Case," Economics Bulletin, AccessEcon, vol. 12(16), pages 1-7.
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    15. Arjen van Witteloostuijn & Thijs Jansen & Arie van Lier, 2007. "Bargaining over managerial contracts in delegation games: managerial power, contract disclosure and cartel behavior," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(8), pages 897-904.
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    Cited by:

    1. Fanti, Luciano & Buccella, Domenico, 2016. "Passive unilateral cross-ownership and strategic trade policy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-22.
    2. Luciano Fanti & Domenico Buccella, 2018. "Firms Controlled by Owners and Managerial Firms: The 'Strategic' Trade Policy Game Revisited," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 71(1), pages 51-72.
    3. Buccella Domenico & Meccheri Nicola, 2024. "Management Centrality in Sequential Bargaining: Implications for Strategic Delegation, Welfare, and Stakeholder Conflict," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 24(1), pages 159-193, January.
    4. Kangsik Choi, 2022. "Organizational form and multiple exportable goods in export rivalry trade," Manchester School, University of Manchester, vol. 90(5), pages 565-586, September.
    5. Kangsik Choi & Ki‐Dong Lee, 2022. "Strategic delegation and network externalities under export rivalry market," Manchester School, University of Manchester, vol. 90(1), pages 1-19, January.

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    More about this item

    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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