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-repeated game, the firms can collude over their FDI versus export decisions. Then, a reduction in trade costs may lead firms to … switch from exporting to undertaking FDI when trade costs are relatively high. Also, collusion over FDI may increase welfare …
Persistent link: https://www.econbiz.de/10003854272
across markets to sustain their most collusive outcome. We find that, when goods are very close substitutes and trade costs … of product substitutability, trade costs are sufficiently low. We also study the dependence of multimarket collusion on …
Persistent link: https://www.econbiz.de/10013113914
, and identical constant marginal costs are considered. It is shown that incomplete information at industrial level …
Persistent link: https://www.econbiz.de/10012829265
This paper studies the design of trade policies in an uncertain third market with incomplete information. Governments in each of the two countries select either direct quantity controls or subsidies in an attempt to shift profits in favour of their own firms in an oligopolistic setting. It is...
Persistent link: https://www.econbiz.de/10013323356
We revisit the adoption of voluntary export restraints (VERS) in the differential Cournot game with sticky price and intraindustry trade by Dockner and Haug (1991). The analysis relies on linear and nonlinear feedback strategies, to encompass the special cases considered in Fujiwara (2010) and...
Persistent link: https://www.econbiz.de/10011819288
In a model of vertical product differentiation, duopolistic firms face quality-dependent costs and compete in quality …' qualities in the previous period determine their costs. In an N-period game, quality standards will in fact lead to convergence …
Persistent link: https://www.econbiz.de/10014063250
incomplete information about the costs of the domestic firm, but the domestic government and the domestic firm are completely … informed. It is shown that the domestic government can use its tariff to signal about the costs of the domestic firm. In the …
Persistent link: https://www.econbiz.de/10014074121
In the United States, there is evidence that domestic non-filing firms do not always support dumping investigations. Absent other factors, domestic firms have an unambiguous incentive to support petitions filed by other domestic producers. We argue that in cases where the non-complainant firm is...
Persistent link: https://www.econbiz.de/10014075531
In this research we show that managerial bonuses can be a way of reducing tariffs while keeping domestic welfare high. For this we analyze all types of bonuses based on pure profit, sales, relative profit and market share. We prove that for the domestic country encouraging the domestic firm to...
Persistent link: https://www.econbiz.de/10014034935
We revisit the two-stage duopoly game with strategic delegation and asymmetric technologies of Sen and Stamatopoulos (2015). We show that their conclusions are misled by the restrictive assumption that the extent of delegation to managers is restricted to a binary set. Allowing for a continuous...
Persistent link: https://www.econbiz.de/10013019273