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If duopolistic firms can choose their strategy variable, uncertainty about demand conditions and the degree of substitutability have countervailing effects on variable choice. High uncertainty favors prices, while close substitutability favors quantities. For intermediate values, a hybrid...
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This paper analyzes a duopoly model with stochastic demand in which firms first choose their strategy variable and compete afterwards. Contrary to the existing literature, we show that firms do not always choose a quantity which is the variable that induces a smaller degree of competition. The...
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between international trade and climate policies. It contributes to the literature from two perspectives: a demand side view … uses general equilibrium trade models to analyse the effect of trade liberalisation on the environment. It shows that a … trade-induced reallocation of production factors towards the most productive firms can explain part of sector-level changes …
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of time consistency of liberalization under the so-called Bogor target of achieving free trade within APEC in 2010 (2020 …
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