Laussel, Didier; Montet, Christian - In: Revue Économique 46 (1995) 3, pp. 911-919
[eng] Dynamic trade wars . The trade war between two countries, first studied by Johnson, is analyzed here as an alternative move game as has been done by Maskin and Tirole [1987] for oligopoly. We show that there exists a unique stable steady state when the countries use linear strategies. The...