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Information and disclosure in strategic trade policy: Revisited

Author

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  • Antoniou, Fabio
  • Tsakiris, Nikos

Abstract

In a recent paper, Creane and Miyagiwa (2008) show that the mode of competition (quantity or price) determines whether information sharing occurs between firms and governments within an international duopoly context in which the fims are located in different countries. In this paper, we show that the relative number of firms located in each country is also critical. In particular, we illustrate that with quantity competition and under the presence of demand and cost uncertainty information sharing does not occur when the number of firms in one country is higher than the number of firms in the other country. Moreover, we show that the informational prisoner's dilemma in the current context appears only when the number of firms across countries is equal.

Suggested Citation

  • Antoniou, Fabio & Tsakiris, Nikos, 2011. "Information and disclosure in strategic trade policy: Revisited," MPRA Paper 32949, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32949
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    File URL: https://mpra.ub.uni-muenchen.de/32949/1/MPRA_paper_32949.pdf
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    References listed on IDEAS

    as
    1. Creane, Anthony & Miyagiwa, Kaz, 2008. "Information and disclosure in strategic trade policy," Journal of International Economics, Elsevier, vol. 75(1), pages 229-244, May.
    2. Brainard, S. Lael & Martimort, David, 1997. "Strategic trade policy with incompletely informed policymakers," Journal of International Economics, Elsevier, vol. 42(1-2), pages 33-65, February.
    3. Jota Ishikawa & Tomohiro Kuroda, 2007. "Export Subsidies Versus Export Quotas With Incompletely Informed Policy Makers," The Japanese Economic Review, Japanese Economic Association, vol. 58(1), pages 118-126.
    4. Jonathan Eaton & Gene M. Grossman, 1986. "Optimal Trade and Industrial Policy Under Oligopoly," The Quarterly Journal of Economics, Oxford University Press, vol. 101(2), pages 383-406.
    5. Maggi, Giovanni, 1999. "Strategic Trade Policy under Incomplete Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 571-594, August.
    6. S. Lael Brainard & David Martimort, 1996. "Strategic Trade Policy Design with Asymmetric Information and Public Contracts," Review of Economic Studies, Oxford University Press, vol. 63(1), pages 81-105.
    7. Qiu, Larry D, 1995. "Strategic Trade Policy under Uncertainty," Review of International Economics, Wiley Blackwell, vol. 3(1), pages 75-85, February.
    8. 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.
    9. Horstmann, Ignatius J. & Markusen, James R., 1986. "Up the average cost curve: Inefficient entry and the new protectionism," Journal of International Economics, Elsevier, vol. 20(3-4), pages 225-247, May.
    10. Maggi, Giovanni, 1996. "Strategic Trade Policies with Endogenous Mode of Competition," American Economic Review, American Economic Association, vol. 86(1), pages 237-258, March.
    11. Russell Cooper & Raymond Riezman, 2013. "Uncertainty and the Choice of Trade Policy in Oligopolistic Industries," World Scientific Book Chapters,in: International Trade Agreements and Political Economy, chapter 16, pages 287-298 World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    Keywords

    Information; uncertainty; strategic trade; multiple firms;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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