Security and Price Arbitrage

We examine the effect of international price arbitrage on the effectiveness of unilateral export controls. The restriction on the quality of exports of security sensitive products limits the outside option of domestic customers: if the product available on the international market is of low quality the firm can charge a high price to domestic customers for its latest technology. This effect leads the government to set looser export controls on security sensitive products.

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Year of publication:	2000-03
Authors:	García-Alonso, María del Carmen
Institutions:	School of Economics, University of Kent
Subject:	Arms Control \| Price Arbitrage

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Extent:	application/pdf
Series:	Studies in Economics. - ISSN 1466-0814.
Type of publication:	Book / Working Paper
Language:	English
Classification:	F10 - Trade. General ; L13 - Oligopoly and Other Imperfect Markets ; D74 - Conflict; Conflict Resolution; Alliances
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005763222