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The purpose of the paper is to narrow the gap between the widespread use of voluntary agreements and research on the rationale of such approaches. A typical example are voluntary agreements of many industries to reduce carbon dioxide emissions because of global warming. If the industry...
Persistent link: https://www.econbiz.de/10011608503
In a two-country general oligopolistic equilibrium model, I study how cross-sector strategic trade policy affects wages, countrywide profits, and welfare. Firms face resource constraints and wages are simultaneously determined. Relative to free trade, cross-sector protectionism generates a...
Persistent link: https://www.econbiz.de/10011374297
The important characteristic of international competition between developed and less developed countries is vertical product differentiation, where firms' quality choices represent strategic decisions. Unlike the previous literature, we allow for a leadership in quality choice and the...
Persistent link: https://www.econbiz.de/10005086629
market. Due to the public financing (or any other external funding), the firm may reduce its costs or any other expenditures … subsidies and their justification on the oligopolistic market. It concerns two models: Branders (1995) – third market model with …
Persistent link: https://www.econbiz.de/10014156008
We introduce demand uncertainty into the context of strategic trade policy in an export rivalry market model, and we … Stackelberg outcome could emerge in the equilibrium depending on market volatility and cost difference between firms. Under … only the Cournot market structure. This result holds for any degrees of uncertainty, regardless whether the firm has cost …
Persistent link: https://www.econbiz.de/10014237069
reciprocal market model. Using a simple two-country trade model, we show that the enforcement of antitrust policy in the domestic … market unambiguously improves the domestic social welfare, while the foreign social welfare may increase or decrease … depending on the degree of product differentiation in the domestic market after the enforcement of the domestic antitrust act …
Persistent link: https://www.econbiz.de/10014076756
involve one domestic firm competing on quantity with its foreign rival, producing a homogeneous good within a home-market …
Persistent link: https://www.econbiz.de/10014040689
Persistent link: https://www.econbiz.de/10009785319
hedging. Post reform impacted firms have lower risk and fewer negative income shocks. Product market competition is also … increase their market share post reform. The results are consistent with hedging allowing firms that face potential costly …
Persistent link: https://www.econbiz.de/10012585845
We study the profitability incentives of merger and the endogenous industry structure in a strategic trade policy environment. Merger changes the strategic trade policy equlilibrium. We show that merger can be profitable and welfare enhancing here, even though it would not be profitable in a...
Persistent link: https://www.econbiz.de/10011507913