Bandyopadhyay, Subhayu; Park, Eun-Soo; Wall, Howard - Federal Reserve Bank of St. Louis - 1999
We present a model of Cournot rivalry where domestic and foreign firms compete in a third-country market, and where the domestic export subsidy is determined by lobbying. Greater domestic cost heterogeneity (a mean-preserving spread of the marginal costs of the domestic firms) means that the...