Endogenous vertical restraints in international trade
This paper examines interbrand competition between a domestic and a foreign manufacturer who market their products through intermediaries. The contracts manufacturers offer these intermediaries are endogenous. In equilibrium, contracts may specify exclusive territories (ET), depending on the degree of substitutability between products and the level and degree of transparency of trade barriers. Trade liberalization, through lower or more transparent barriers, may lead manufacturers to use ET, thereby substituting private anti-competitive arrangements for government-imposed barriers. This substitution may decrease competition and welfare, and thus create a role for competition policy in a free trade environment.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fargeix, Andre & Perloff, Jeffrey M., 1989.
"The effect of tariffs in markets with vertical restraints,"
Journal of International Economics,
Elsevier, vol. 26(1-2), pages 99-117, February.
- Fargeix, Andre & Perloff, Jeffrey M, 1987. "The effect of tariffs in markets with vertical restraints," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt49v754qw, Department of Agricultural & Resource Economics, UC Berkeley.
- Horn, Henrik & Levinsohn, James A, 2000.
"Merger Policies And Trade Liberalization,"
CEPR Discussion Papers
2459, C.E.P.R. Discussion Papers.
- Henrik Horn & James Levinsohn, 1997. "Merger Policies and Trade Liberalization," NBER Working Papers 6077, National Bureau of Economic Research, Inc.
- Horn, H. & Levinsohn, J., 1998. "Merger Policies and Trade Liberalization," Working Papers 420, Research Seminar in International Economics, University of Michigan.
- Jeffrey Frankel & Andrew Rose, 2002.
"An Estimate of the Effect of Common Currencies on Trade and Income,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 117(2), pages 437-466.
- Frankel, Jeffrey & Rose, Andrew K., 2001. "An Estimate of the Effect of Common Currencies on Trade and Income," Working Paper Series rwp01-013, Harvard University, John F. Kennedy School of Government.
- Martin Richardson, 2004.
"Trade Policy and Access to Retail Distribution,"
Review of International Economics,
Wiley Blackwell, vol. 12(4), pages 676-688, 09.
- Robert C. Feenstra, 1987.
"Symmetric Pass-Through of Tariffs and Exchange Rates Under Imperfect Competition: An Empirical Test,"
NBER Working Papers
2453, National Bureau of Economic Research, Inc.
- Feenstra, Robert C., 1989. "Symmetric pass-through of tariffs and exchange rates under imperfect competition: An empirical test," Journal of International Economics, Elsevier, vol. 27(1-2), pages 25-45, August.
- Massimo Motta & Fabrizio Onida, 1997. "Trade Policy and Competition Policy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 56(1-2), pages 67-97, June.
- Sadao Nagaoka, 2000.
"International Trade Aspects of Competition Policy,"
in: Deregulation and Interdependence in the Asia-Pacific Region, NBER-EASE Volume 8, pages 55-78
National Bureau of Economic Research, Inc.
- Bengt Holmstrom & Roger B. Myerson, 1981.
"Efficient and Durable Decision Rules with Incomplete Information,"
495, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Holmstrom, Bengt & Myerson, Roger B, 1983. "Efficient and Durable Decision Rules with Incomplete Information," Econometrica, Econometric Society, vol. 51(6), pages 1799-819, November.
- Gary R. Saxonhouse, 1993.
"What Does Japanese Trade Structure Tell Us about Japanese Trade Policy?,"
Journal of Economic Perspectives,
American Economic Association, vol. 7(3), pages 21-43, Summer.
- Saxonhouse, G.R., 1993. "What Does Japanese Trade Structure Tell Us about Japanese Trade Policy?," Working Papers 337, Research Seminar in International Economics, University of Michigan.
- repec:fth:michin:337 is not listed on IDEAS
- Keith Head & John Ries, 1997. "International Mergers and Welfare under Decentralized Competition Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1104-23, November.
- Richardson, Martin, 1999. "Trade and Competition Policies: Concordia Discors?," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 649-64, October.
- Gal-Or, Esther, 1991. "Duopolistic vertical restraints," European Economic Review, Elsevier, vol. 35(6), pages 1237-1253, August.
- Levinsohn, J., 1994.
"Competition Policy and International Trade,"
362, Research Seminar in International Economics, University of Michigan.
- Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 7-46, 04.
- James E. Rauch, 1996.
"Networks versus Markets in International Trade,"
NBER Working Papers
5617, National Bureau of Economic Research, Inc.
- Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
- repec:fth:michin:362 is not listed on IDEAS
- Nancy T. Gallini & Aidan Hollis, 1996.
"A Contractual Approach to the Gray Market,"
gallini-96-01, University of Toronto, Department of Economics.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, December.
When requesting a correction, please mention this item's handle: RePEc:eee:eecrev:v:49:y:2005:i:7:p:1877-1889. 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: (Shamier, Wendy)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.