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Timing of protectionism

Author

Listed:
  • Aurora Gómez Galvarriato

    (CIDE)

  • Cesar Guerrero-Luchtenberg

    (Universidad de Alicante)

Abstract

Recent history gives us evidence of the different timing and results of the opening up of several economies. We present a model to explain this divergence. Accordingly with this evidence, we show that, provided the government prefers more competition than less competition irrespective of the .rms. nationality, essentially three concepts explain everything: The agent' degree of impatience, the gap between the domestic and the foreign technologies and the costs due to the political environment. In sharp contrast to the existing literature, we show that a temporal protectionism can be time consistent, and domestic firms adopt new technologies under it.

Suggested Citation

  • Aurora Gómez Galvarriato & Cesar Guerrero-Luchtenberg, 2010. "Timing of protectionism," Working Papers. Serie AD 2010-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2010-03
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2010-03.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Piolatto, Amedeo & Schuett, Florian, 2012. "Music piracy: A case of “The Rich Get Richer and the Poor Get Poorer”," Information Economics and Policy, Elsevier, vol. 24(1), pages 30-39.
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    7. Javier López-Cuñat & Francisco Martínez-Sánchez, 2015. "Anti-piracy policy and quality differential in markets for information goods," European Journal of Law and Economics, Springer, vol. 39(2), pages 375-401, April.
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    More about this item

    Keywords

    Temporal Protectionism; Time Consistency; Bankruptcies;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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