Showing 1 - 10 of 1,002
Actual and potential competition is a powerful source of discipline on the pricing behavior of firms with market power. A simple model is developed that shows that the effects of import competition and domestic entry regulation on industry price-cost markups depend on country size. Barriers to...
Persistent link: https://www.econbiz.de/10005124180
Large multi-product firms dominate international trade flows. This paper documents new facts about multi-product manufacturing exporters that are not easily reconciled with existing multi-product models. Using novel linked production and export data at the firm-product level, we find that the...
Persistent link: https://www.econbiz.de/10011084504
This paper derives optimal trade and domestic taxes for a small open economy containing a monopolistically competitive (MC) sector in which firms may have heterogeneous productivity levels. Domestic protection brings gains from expanding the number of product varieties on offer, but these gains...
Persistent link: https://www.econbiz.de/10011083718
This paper studies the extensive and intensive margins of firms' global sourcing decisions. We develop a quantifiable multi-country sourcing model in which heterogeneous firms self-select into importing based on their productivity and country-specific variables. The model delivers a simple...
Persistent link: https://www.econbiz.de/10011145398
This paper sees countertrade as a means by which the PCPEs (previously centrally planned economies) and LDCs extract some of the monopoly profits from firms in OECD countries to subsidize their exports. Viewed in this way, countertrade is an exchange of market entry for marketing assistance in...
Persistent link: https://www.econbiz.de/10005498049
We analyse the compatibility decisions of two national firms producing horizontally differentiated variants of a good that exhibits network effects for the world market. One of the firms is able to endogenously establish an installed base in its domestic market. The firm's effort in that respect...
Persistent link: https://www.econbiz.de/10005791513
each government may grant R&D subsidies to the domestic firm. We show that it is optimal for a government to provide higher … R&D subsidies the lower the level of trade costs, even if the firms are independent monopolies. If firms produce … necessarily welfare-maximizing. The optimal coordinated policies may imply an asymmetric outcome with R&D subsidies to only one of …
Persistent link: https://www.econbiz.de/10005497968
industrial production and in new products supplied by new firms entering the market. Small export subsidies are self financing …
Persistent link: https://www.econbiz.de/10005789199
This Paper studies the criteria with which the presence or absence of ‘subsidy’ in sales contingent Launch Aid R&D support may be determined when payoff-relevant market incompleteness limits the precision of market-based pricing to non-trivial intervals. The criteria currently employed in...
Persistent link: https://www.econbiz.de/10005136724
This Paper presents a model of international trade that features heterogeneous firms, relative endowment differences across countries, and consumer taste for variety. The Paper demonstrates that firm reactions to trade liberalization generate endogenous Ricardian productivity responses at the...
Persistent link: https://www.econbiz.de/10005067571