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This paper studies how cross-sector strategic trade policy affects wages, country-wide profits, and welfare. I develop a simple model of two-country continuum-of-sectors general oligopolistic equilibrium. Demands are linear and sectors involve one domestic firm competing on quantity with its...
Persistent link: https://www.econbiz.de/10014040689
Persistent link: https://www.econbiz.de/10009785319
textbook version theory of the optimal tariff in partial equilibrium. Rationalization of these effects suggests a political …
Persistent link: https://www.econbiz.de/10011374297
This paper investigates a government's choice of strategic trade policy when the domestic firm observes a private noisy signal about the stochastic market demand while in competition with a rival firm. The government chooses between quantity controls and subsidies to maximize profits of the...
Persistent link: https://www.econbiz.de/10014216283
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
In this paper we consider how the degree of risk aversion, and demand/cost uncertainty, influence competition on … oligopolistic markets. Under demand uncertainty, the best response strategies (both quantities and prices) are decreasing in risk … aversion, but for cost uncertainty, quantities are decreasing while prices are increasing. If firms are risk averse, past …
Persistent link: https://www.econbiz.de/10014109903
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/10001771983
firms compete in an international Cournot oligopoly, and in which countries use strategic trade policy. We find that firms …
Persistent link: https://www.econbiz.de/10001754908
firms compete in an international Cournot oligopoly, and in which countries use strategic trade policy. We find that firms …
Persistent link: https://www.econbiz.de/10011506470
This paper studies the effect of production subsidies used as strategic instruments by two rivalling countries whose firms differ in production efficiency. In particular, it examines the welfare effects of a uniform subsidy reduction from the Cournot-Nash equilibrium under different assumptions...
Persistent link: https://www.econbiz.de/10014064227