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ON THE ENDOGENOUS TIMlNG IN TRADE POLICY GAME FA GENERAL CASE

Author

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  • Tsuyoshi Toshimitsu

    (School of Economics, Kwansei Gakuin University)

Abstract

This paper discusses the timing and the optimal trade policy in the presence of oligopolisitic industries and free entry. Collie (1994) proved that an importing government should not commit a countervailing duty in response to a foreign export subsidy. We show that his main conclusion does not always hold, since the timing, as well as the optimal trade policy, depends on the number of firms in both countries and the characteristic of the industry, i.e. no entry or free entry.

Suggested Citation

  • Tsuyoshi Toshimitsu, 1997. "ON THE ENDOGENOUS TIMlNG IN TRADE POLICY GAME FA GENERAL CASE," Discussion Paper Series 20, School of Economics, Kwansei Gakuin University, revised Oct 1997.
    • Handle: RePEc:kgu:wpaper:20
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp20.pdf
    File Function: First version, 1997
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    References listed on IDEAS

    as
    1. Collie, David, 1991. "Export subsidies and countervailing tariffs," Journal of International Economics, Elsevier, vol. 31(3-4), pages 309-324, November.
    2. Hamilton, Jonathan H. & Slutsky, Steven M., 1990. "Endogenous timing in duopoly games: Stackelberg or cournot equilibria," Games and Economic Behavior, Elsevier, vol. 2(1), pages 29-46, March.
    3. Dixit, Avinash, 1984. "International Trade Policy for Oligopolistic Industries," Economic Journal, Royal Economic Society, vol. 94(376a), pages 1-16, Supplemen.
    4. David Collie, 1994. "Endogenous timing in trade policy games: Should governments use countervailing duties?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 191-209, March.
    5. Albaek, Svend, 1990. "Stackelberg Leadership as a Natural Solution under Cost Uncertainty," Journal of Industrial Economics, Wiley Blackwell, vol. 38(3), pages 335-347, March.
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    Cited by:

    1. Masayuki Hayashibara, 2002. "Industrial Concentration Reverses the Timing in a Trade Policy Game," Open Economies Review, Springer, vol. 13(1), pages 73-86, January.

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