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This paper focuses on ignored issues regarding the impact of trade reforms in transition economies. These economies are primarily characterized by a low quality of their products, large depreciations of their currencies, and a high degree of government intervention in economic activity. These...
Persistent link: https://www.econbiz.de/10010324646
-dumping (AD) policy are examined,namely, a price undertaking (PU) and an anti-dumping duty. We show that, when firms …
Persistent link: https://www.econbiz.de/10010325360
Anti-dumping actions are now the trade policy of choice of developing and transition economies. To understand why these economies have increasingly applied anti-dumping laws, we build a simple theoretical model of vertical intra-industry trade and investigate the strategic incentives of...
Persistent link: https://www.econbiz.de/10010325270
We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with …
Persistent link: https://www.econbiz.de/10010325731
We investigate the nature of market failure in a dynamic version ofAkerlof (1970) where identicalcohorts of a durable good enter the market over time. In the dynamicmodel, equilibria withqualitatively different properties emerge. Typically, in equilibriaof the dynamic model, sellerswith higher...
Persistent link: https://www.econbiz.de/10010324453
We study the optimal trade policy against a foreign oligopoly withendogenous quality. We show that, under the Most Favoured Nation(MFN) clause, a uniform tariff policy is always welfare improvingover the free trade equilibrium. However, a nonuniform tariff policyis always desirable on welfare...
Persistent link: https://www.econbiz.de/10010324550
This paper studies the relationship between three key elements of the marketing mix, namely, price, product, and … distortions imply that (i) even if CDA increases the market price, the degree of market power need not increase and (ii) CDA may … yield a welfare loss even if it leads to a lower market price. …
Persistent link: https://www.econbiz.de/10010324895
Firms signal high quality through high prices even if the market structure is highly competitive and price competition … business to rival firms with higher probability. Some of the revealing equilibria involve high degree of market power (price …
Persistent link: https://www.econbiz.de/10010325591
This paper examines international trade in tainted food and other low-quality products. Wefirst find that for a large class of environments, free trade is the trading system that conveysthe highest incentives to produce non-tainted high-quality goods by foreign exporters.However, free trade...
Persistent link: https://www.econbiz.de/10010325688
seller has private information about his alternative trading opportunities. Theory predicts that, compared with a situation … second main finding is that investments do increase with the price-setting power of the investor. Overall the results … question some recent theoretical suggestions that private information rents might substitute for price-setting power in …
Persistent link: https://www.econbiz.de/10010325012