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We consider an international cartel whose members interact repeatedly in their own as well as in third-country segmented markets. Cartel discipline-an inverse measure of the degree of competition between firms-is endogenously determined by the cartel’s incentive compatibility constraint (ICC),...
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We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....
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same technology, domestic country-wide profits benefit from small import tariffs whereas foreign counterpart is hit …
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violates IPR cannot legally export in a country that enforces them. Moreover free-riders cannot prevent others to copy their …
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large firms (oligopoly) and small firms (monopolistic competition). We will provide new implication of trade gain …
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tends to choose the direct quantity control, while the country with well-informed firms would use export subsidy (export …
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. If supporting workers is the policy objective, tariffs do not appear to be a suitable tool under oligopoly and need to be …I study welfare and distributional effects of import tariffs in a two-country asymmetric general oligopolistic … equilibrium trade model. Tariffs have an anti-competitive effect that reduces labor demand because firms want to shorten supply …
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