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The role of technology security in a model of trade with horizontal differentiation

  • del Carmen Garcia-Alonso, Maria

The security concerns of exporters of products which might be used for military purposes have motivated different security regimes that limit the quality of the products exported by home firms. At the same time however, home governments want to ensure the competitiveness of their home companies. We analyze the optimal policy of a government facing such a trade off. We present a multistage model in which the government has the ability to commit to R&D subsidies but cannot credibly set its quality restrictions until the outcome of the R&D process is known.

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File URL: http://www.sciencedirect.com/science/article/B6V8P-404R38S-3/2/1952db76722732ff8e7a3110c5c3a04a
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Article provided by Elsevier in its journal International Journal of Industrial Organization.

Volume (Year): 18 (2000)
Issue (Month): 5 (July)
Pages: 747-772

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Handle: RePEc:eee:indorg:v:18:y:2000:i:5:p:747-772
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505551

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  1. Levine, Paul & Smith, Ron, 1995. "The Arms Trade and Arms Control," Economic Journal, Royal Economic Society, vol. 105(429), pages 471-84, March.
  2. Morton I. Kamien & Yair Tauman, 1984. "Fees Versus Royalties and the Private Value of a Patent," Discussion Papers 583, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Vickers, John S, 1986. "The Evolution of Market Structure When There Is a Sequence of Innovations," Journal of Industrial Economics, Wiley Blackwell, vol. 35(1), pages 1-12, September.
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