This paper presents a theory of government intervention which provides an explanation for "industrial strategy" policies such as R&D or export subsidies in imperfectly competitive international markets. Each producing country has an incentive to try to capture a greater share of rent-earning...

This chapter focuses on the concept of strategic trade policy. The analysis of strategic trade policy is part of a broader research agenda that has been very active since the beginning of the 1980s. Over this period, international trade economists have sought to incorporate oligopoly and other...

This paper develops a model in which the rivalry of oligopolistic firms serves as an independent cause of international trade. The model shows how such rivalry naturally gives rise to "dumping" of output in foreign markets, and shows that such dumping can be "reciprocal" -- that is, there may be...