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Domestic Content Requirements with Bilateral Monopoly


  • Beghin, John C.
  • Sumner, D.


This short paper models physical content policies in a bilateral monopoly setting using a cooperative game approach. For just binding or nonbinding content requirements, the policy does not induce any deadweight loss but alters the profit distribution in favor of the domestic supplier. This result holds as long as the inputs concerned by the policy are good substitutes in production, and when the disagreement point corresponds to low content requirements and low marginal cost for the domestic input. Copyright 1992 by Royal Economic Society.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Beghin, John C. & Sumner, D., 1992. "Domestic Content Requirements with Bilateral Monopoly," Staff General Research Papers Archive 1571, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:1571

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    References listed on IDEAS

    1. Lilyan E. Fulginiti & Jason F. Shogren, 1992. "Agricultural Protection in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 795-801.
    2. Beghin, John C & Kherallah, Mylene, 1994. "Political Institutions and International Patterns of Agricultural Protection," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 482-489, August.
    3. Johan F. M. Swinnen, 1994. "A Positive Theory of Agricultural Protection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 1-14.
    4. Beghin, John C. & Karp, Larry S., 1991. "Estimation of price policies in Senegal An empirical test of cooperative game theory," Journal of Development Economics, Elsevier, vol. 35(1), pages 49-67, January.
    5. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    6. Zusman, Pinhas, 1976. "The Incorporation and Measurement of Social Power in Economic Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(2), pages 447-462, June.
    7. Beghin, John C., 1990. "Game-Theoretic Model of Endogenous Public Policies, A," Staff General Research Papers Archive 1573, Iowa State University, Department of Economics.
    8. Honma, Masayoshi & Hayami, Yujiro, 1986. "Structure of agricultural protection in industrial countries," Journal of International Economics, Elsevier, vol. 20(1-2), pages 115-129, February.
    9. Bardhan, Pranab, 1990. "Symposium on the State and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 3-7, Summer.
    10. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 371-400.
    11. John C. Beghin, 1990. "A Game-Theoretic Model of Endogenous Public Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 138-148.
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    Cited by:

    1. Bekkali, Mukhtar & Beghin, John C., 2005. "Economics of Domestic Cultural Content Protection in Broadcasting, The," Staff General Research Papers Archive 12476, Iowa State University, Department of Economics.
    2. Jie-A-Joen,Clive & Belderbos,René & Sleuwaegen,Leo, 1998. "Local content requirements, vertical cooperation, and foreign direct investment," Research Memorandum 001, Maastricht University, Netherlands Institute of Business Organization and Strategy Research (NIBOR).
    3. Beghin, John C. & Blake Brown, A. & Hasyim Zaini, M., 1997. "Impact of domestic content requirement on the US tobacco and cigarette industries," Agricultural Economics, Blackwell, vol. 15(3), pages 201-212, January.
    4. Anni Huhtala & Eva Samakovlis, 2002. "Does International Harmonization of Environmental Policy Instruments Make Economic Sense?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(3), pages 259-284, March.
    5. repec:ebl:ecbull:v:6:y:2004:i:24:p:1-9 is not listed on IDEAS

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