IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v46y1994i1p30-44.html
   My bibliography  Save this article

Tariffs and Subsidies with Price Competition and Integrated Markets: The Mixed Strategy Equilibria

Author

Listed:
  • Venables, Anthony J

Abstract

This paper analyzes trade policy in an integrated market in which two firms are price competitors. If tariff or export subsidies are in place, there is no equilibrium in pure strategies. The import tariffs and export subsidies give one firm a price advantage in one market. The effect of this is to reduce the incentive, usually a characteristic of price competition, to undercut prices. This reduction in the intensity of competition means that import tariffs may be overshifted and that an export subsidy raises consumer prices in both countries. Copyright 1994 by Royal Economic Society.

Suggested Citation

  • Venables, Anthony J, 1994. "Tariffs and Subsidies with Price Competition and Integrated Markets: The Mixed Strategy Equilibria," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 30-44, January.
    • Handle: RePEc:oup:oxecpp:v:46:y:1994:i:1:p:30-44
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0030-7653%28199401%292%3A46%3A1%3C30%3ATASWPC%3E2.0.CO%3B2-S&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    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. Santiago J. Rubio & María Dolores Alepuz, 2005. "Foreign Monopolies And Tariff Agreements Under Integrated Markets," Working Papers. Serie AD 2005-38, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. Barros, Pedro Pita & Martinez-Giralt, Xavier, 1999. "On the effects of antidumping legislation," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 53-72, January.
    3. Virginia Di Nino & Barry Eichengreen & Massimo Sbracia, 2011. "Real exchange rates, trade, and growth: Italy 1861-2011," Quaderni di storia economica (Economic History Working Papers) 10, Bank of Italy, Economic Research and International Relations Area.
    4. Collie, David R., 1998. "Trade policy under Bertrand duopoly with integrated markets: the pure strategy equilibrium," Economics Letters, Elsevier, vol. 60(2), pages 179-183, August.
    5. Venables, Anthony, 1996. "Lecture Notes on International Trade and Imperfect Competition," Working Paper Series 463, Research Institute of Industrial Economics.

    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:oup:oxecpp:v:46:y:1994:i:1:p:30-44. See general information about how to correct material in RePEc.

    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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.