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block foreign takeover of domestic firms and increase its incentive to allow mergers among national firms. This creation of …
Persistent link: https://www.econbiz.de/10008625979
. Mergers can be used to appropriate rents on consumptive third markets, even when the trade policy of these countries reacts … endogenously. Competition policy inside the bloc of the two producing countries is too permissive towards mergers and acquisitions …. A policy of cross-border mergers (European champions) need not imply a conflict between regional and global welfare. In …
Persistent link: https://www.econbiz.de/10005582094
Cultural allegiances whether inherited, imposed or chosen, affect economic activity. Many of these cultural layers – ethnic background, religion, language, ideological orientation, and artistic interests – spill over national boundaries. Cultural ideas travel the world along many routes from...
Persistent link: https://www.econbiz.de/10014023796
We examine strategic research and development (R&D) policy for quality-differentiated products in a third-market trade model. We extend the previous work by adding a third exporting country, so that the market structure is international triopoly. We show that the presence of the third exporting...
Persistent link: https://www.econbiz.de/10010730203
This paper examines the implications for strategic trade policy of different assumptions about precommitment. In a dynamic oligopoly game with learning by doing, the optimal first-period subsidy is lower if firms cannot precommit to future output than if they can; and is lower still if the...
Persistent link: https://www.econbiz.de/10005661773
This paper studies the effects of a further integration of markets that are characterized by intra-industry trade. The analysis is motivated by the observation that product markets of EU countries are more segmented than is usually supposed, which becomes evident e.g. from high differences in...
Persistent link: https://www.econbiz.de/10008633399
In an oligopoly trade model where firms engage in R&D, international differences in market size allow for the emergence of endogenous asymmetries between firms. Concretely, firms located in countries with more demand become more competitive because they have strong incentives to perform R&D...
Persistent link: https://www.econbiz.de/10005788976
Persistent link: https://www.econbiz.de/10005791600
Market size and transport costs are important ingredients of international trade. We propose to look at these issues from a different perspective. Using a Hotelling duopoly model with quadratic transport costs, we analyse the welfare effects of international trade between two countries that...
Persistent link: https://www.econbiz.de/10005791793
This paper investigates the impact of free trade on welfare in a two-country world modelled as an international Hotelling duopoly with quadratic transport costs and asymmetric countries, where a negative environmental externality is associated with the consumption of the good produced in the...
Persistent link: https://www.econbiz.de/10010666088