Showing 1 - 10 of 1,307
the government incentive to impact on entry costs, and how entry subsidies can be used strategically in open economies. We … the monopoly pricing distortion. In the autarky equilibrium these subsidies trigger entry, but they eventually do not lead … to more but to better firms in the market. In the open economy there is another, strategic motive for entry subsidies as …
Persistent link: https://www.econbiz.de/10010271259
the government incentive to impact on entry costs, and how entry subsidies can be used strategically in open economies. We … the monopoly pricing distortion. In the autarky equilibrium these subsidies trigger entry, but they eventually do not lead … to more but to better firms in the market. In the open economy there is another, strategic motive for entry subsidies as …
Persistent link: https://www.econbiz.de/10003894876
As a part of their industry or competition policies governments decide whether to allow for free market entry of firms or to regulate market access. We analyze a model where governments (ab)use these policy decisions for strategic reasons in an international setting. Multiple equilibria of this...
Persistent link: https://www.econbiz.de/10011508060
In a two-country general oligopolistic equilibrium model, I study how cross-sector strategic trade policy affects wages, countrywide profits, and welfare. Firms face resource constraints and wages are simultaneously determined. Relative to free trade, cross-sector protectionism generates a...
Persistent link: https://www.econbiz.de/10011374297
This paper examines social welfare effects of antitrust regulation in the presence of strategic trade policy within a reciprocal market model. Using a simple two-country trade model, we show that the enforcement of antitrust policy in the domestic market unambiguously improves the domestic...
Persistent link: https://www.econbiz.de/10014076756
This paper studies how cross-sector strategic trade policy affects wages, country-wide profits, and welfare. I develop a simple model of two-country continuum-of-sectors general oligopolistic equilibrium. Demands are linear and sectors involve one domestic firm competing on quantity with its...
Persistent link: https://www.econbiz.de/10014040689
We study a general equilibrium model of international trade with heterogeneous firms, where countries can strategically invest in technology. The countries' motive is to improve firms' productivity, leading to a competitive advantage in international trade. We are interested in how trade...
Persistent link: https://www.econbiz.de/10008933293
. incentives to give subsidies to their local firms. National merger induces more strategic trade policy, whereas international …
Persistent link: https://www.econbiz.de/10011507913
In this note we consider the preferences of a profit maximizing firm for international ownership in a world in which firms compete in an international Cournot oligopoly, and in which countries use strategic trade policy. We find that firms prefer national ownership and show that full...
Persistent link: https://www.econbiz.de/10011506470
' incentives to give subsidies to their local firms. A national merger induces more strategic trade policy, whereas an …
Persistent link: https://www.econbiz.de/10013319916