Matteucci, Giorgio; Reverberi, Pierfrancesco - Dipartimento di Ingegneria Informatica, Automatica e … - 2014
We study the case where parallel trade (PT) stems from government price controls in a foreign country. We remove the presumption that PT blunts dynamic efficiency if the government has partial commitment ability. We model the R&D firmÕs option to serve the foreign country, and find that PT may...