This paper develops a super game model of collusion between price-setting oligopolists located in different markets separated by trade costs. The firms produce a homogenous good and sustain collusion based on territorial allocation of markets. We first show, in a more general framework than some...

Book Review of Jagdish Bhagwati, Arvind Panagariya and T. N. Srinivasan, Lectures on International Trade, Oxford University Press, New Delhi, 2003, pp.xii+602, Rs.750, ISBN 019566442-6

This paper examines the effects of foreign entry, in the form of either imports or direct foreign investment, into an oligopolistic market. Incorporating a possible divergence between private and social costs, it first derives simple conditions under which foreign entry reduces welfare relative...

Book review of Pulapre Balakrishnan, Economic Growth in India: History and Prospect, Oxford University Press, New Delhi, 2010, pp. xxxv+289, ISBN 978-0-19-806547-0.

After providing a self-contained introduction to the branch of mainstream economics known as the 'New Economic Geography' (NEG), this paper shows that many of its basic assumptions, mechanisms, results and policy prescriptions were anticipated by Nicholas Kaldor more than two decades earlier. A...

Nearly four decades of experience with the MRTP Act generated very little by way of skills that could be of use for the Competition Act. Aditya Bhattacharjea (University of Delhi).

This paper adapts an incentive-compatible regulatory mechanism to the problem of taxing a foreign monopolist with unknown costs, when price and quantity contracts cannot be enforced. It is shown that the optimal mechanism involves an import licence fee, and yields zero expected revenue to the...

This paper examines the effects of foreign entry, in the form of either imports or direct foreign investment, into an oligopolistic market. It shows that foreign entry can reduce welfare relative to autarky unless at least some domestic firms exit, or unless the foreign firms capture a very...

Several decades after formally attaining independence, many developing countries continue to trade disproportionately with the European countries that once ruled them. Earlier attempts to examine this phenomenon have relied on inappropriate statistical techniques. After reviewing the existing...