Polavarapu, Ramana; Vaidya, Ashish - In: Economia Internazionale / International Economics 47 (1994) 2-3, pp. 207-217
In oligopolistic markets characterized by Bertrand competition, we show that a small country gains from trade by passively following the price leadership of a larger country. We examine the nature of optimal trade policy far the small country and show that an export tax is optimal. This form of...