One central result in the strategic trade literature is that governments should not support domestic ”losers” but domestic ”winners”. We show that when first-mover advantages are taken into account, the reverse holds, governments have stronger incentives to support domestic ”losers”...

In this paper we discuss the incentives of a welfare maximizing government to implement strategic trade policy when there is, on the one hand, uncertainty about the relevant market information (like the type of competition, demand function, cost function, etc.), but, on the other hand, the...

In this paper we discuss the incentives of a welfare maximizing government to implement strategic trade policy when there is, on the one hand, uncertainty about the relevant market information (like the type of competition, demand function, cost function, etc.), but, on the other hand, the...