Information and disclosure in strategic trade policy: Revisited
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.
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- Jonathan Eaton & Gene M. Grossman, 1986.
"Optimal Trade and Industrial Policy Under Oligopoly,"
The Quarterly Journal of Economics,
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- Anthony Creane & Kaz Miyagiwa, 2007.
"Information and Disclosure in Strategic Trade Policy,"
ISER Discussion Paper
0705, Institute of Social and Economic Research, Osaka University.
- Creane, Anthony & Miyagiwa, Kaz, 2008. "Information and disclosure in strategic trade policy," Journal of International Economics, Elsevier, vol. 75(1), pages 229-244, May.
- Anthony Creane & Kaz Miyagiwa, 2005. "Information and Disclosure in Strategic Trade Policy," Emory Economics 0530, Department of Economics, Emory University (Atlanta).
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