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Strategic Trade Policy in a Cournot Oligopoly with Convex Cost

Author

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  • Arijit Mukherjee
  • Uday Bhanu Sinha

Abstract

We provide a simple reason for export tax in a third-country model of strategic trade policy. We show that the optimal policy under Cournot competition could be export tax in the presence of convex production costs. This happens whether or not the import competing country imposes import tariff. JEL Codes: F12, F13

Suggested Citation

  • Arijit Mukherjee & Uday Bhanu Sinha, 2025. "Strategic Trade Policy in a Cournot Oligopoly with Convex Cost," Foreign Trade Review, , vol. 60(2), pages 226-232, May.
    • Handle: RePEc:sae:fortra:v:60:y:2025:i:2:p:226-232
    DOI: 10.1177/00157325241266040
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    More about this item

    Keywords

    Convex cost; export tax; strategic trade policy; third-country model;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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