We endogenize the formation of domestic trade policy in a duopoly composed of a domestic firm and a foreign firm. The foreign firm can undertake foreign direct investment (FDI) in the domestic market should trade policies become too stringent. We model trade policy formation as a common agency...

"This volume collects 26 papers covering channels of international technology transfer; multinational firms, market structure, and welfare; intellectual property rights, foreign direct investment, and innovation; flexibilities contained in the Agreement on Trade-Related Aspects of Intellectual...

In a North-South vertically differentiated duopoly, the analysis in this paper derives equilibrium government policies towards parallel imports. By incorporating strategic interaction at the policy-setting stage and the product market, the model sheds new light on (i) the effects of parallel...