Mercantilism as Strategic Trade Policy: The Anglo-Dutch Rivalry for the East India Trade
This paper interprets seventeenth-century mercantilism, when international trade was conducted chiefly by state-chartered monopoly trading companies, in light of recent theories of strategic trade policy. The Anglo-Dutch rivalry for the East India trade illustrates a case in which the profit-shifting motive for strategic trade policies exists. Dutch supremacy in the early East India trade was facilitated by a managerial incentive scheme in the monopoly charter that enabled it to achieve a Stackelberg leadership position. Data from the East India trade around 1620 are used in a Cournot duopoly model to examine the possible effects of other policies. Copyright 1991 by University of Chicago Press.
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.:
- James A. Brander & Barbara J. Spencer, 1984.
"Export Subsidies and International Market Share Rivalry,"
NBER Working Papers
1464, National Bureau of Economic Research, Inc.
- Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
- Fershtman, Chaim & Judd, Kenneth L, 1987.
"Equilibrium Incentives in Oligopoly,"
American Economic Review,
American Economic Association, vol. 77(5), pages 927-940, December.
- Steven D. Sklivas, 1987. "The Strategic Choice of Managerial Incentives," RAND Journal of Economics, The RAND Corporation, vol. 18(3), pages 452-458, Autumn.
When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:99:y:1991:i:6:p:1296-314. 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: (Journals Division)
If references are entirely missing, you can add them using this form.