Calzolari, Giacomo; Lambertini, Luca - In: Review of International Economics 14 (2006) 4, pp. 632-644
This paper examines the equivalence among price-modifying and quantity-fixing international trade policies in a differential game. We employ two well-known capital accumulation dynamics for firms, due to Nerlove and Arrow and to Ramsey, respectively. We show that, in both cases, open-loop and...