Roy, Santanu; Saggi, Kamal - In: Canadian Journal of Economics 45 (2012) 4, pp. 1369-1396
In a two-country Hotelling type duopoly model of price competition, we show that parallel import (PI) policy can act as an instrument of strategic trade policy. The home firm's profit is higher when it <i>cannot</i> price discriminate internationally if and only if the foreign market is sufficiently...