Ravikumar, B.; Riezman, Raymond Glenn; Zhang, Yuzhe - 2022
We study infant industry protection using a dynamic model in which the industry's cost is initially higher than that of … foreign competitors. The industry can stochastically lower its cost via learning by doing. Whether the industry has … transitioned to low cost is private information. We use a mechanism-design approach to induce the industry to reveal its true cost …