Recently, strategic protective trade policies are emerging. The strategic choices are a result of asymmetric information on demand parameters and a firm's cost structure. In this paper, we will suggest the optimal policy of eliciting private information from domestic firms. The policy is a...

We analyze how a large informed trader chooses between a lit exchange and a dark pool. We show that (1) the market share of the dark pool increases when the informed trader trades; (2) the market share of the dark pool increases more when the value of information is higher; and (3) price...

Mandated countertrade is a policy to restrict unilateral imports. A country's government thereby in effect commits domestic firms not to purchase from a foreign trading partner unless there are reciprocal sales. We argue that the policy may be a rational response to fundamental contracting...