We analyze a simple "tariffs cum foreign competition" policy targeted at enhancing the competitive position of a domestic, developing country firm that competes with its developed country counterpart on the domestic market and that carries out an innovative (imitative) effort. We evaluate this...

This paper investigates the issue of the optimal tariff policy of the domestic country ("North") in an environment in which its trade with the foreign country ("South") is accompanied by a leakage of technological information (spillovers). Three duopoly games were considered. The first one views...

We analyse the effects of simple strategic trade policy in a duopoly with vertical product differentiation where firms from a developed and less developed country compete in both qualities and prices in the domestic market. The distinction between the developed and developing country firm is...

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...