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- troduction of market power and increasing returns to scale into the international trade theory. The enormous political …
Persistent link: https://www.econbiz.de/10013519215
In a three-country model in which export countries adopt environmental policies, this note analyses how abatement ("green") subsidy can become a potential strategic trade policy tool. When governments set the optimal policy tool considering their local environmental damages, a rich set of...
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We examine optimal industrial and trade policies in a series of dynamic oligopoly games in which a home and a foreign firm compete in R & D and output. Alternative assumptions about the timing of moves and the ability of agents to commit intertemporally are considered. We show that the home...
Persistent link: https://www.econbiz.de/10014085789
The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these … predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the … theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from …
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game theory of the firm. A theoretical case for picking winners through a preferential innovative policy is discussed in a …
Persistent link: https://www.econbiz.de/10011377579
This paper studies the structure of optimal finance contracts in an agency model of outside finance, when investors possess private information. We show that, depending on the intensity of the entrepreneur's moral hazard problem, optimal contracts induce full, partial, or no revelation of the...
Persistent link: https://www.econbiz.de/10010366545
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