This paper examines the equivalence among price-modifying and quantity fixing international trade policies in a differential game. We employ two well known capital accumulation dynamics for firms, due to Nerlove and Arrow and to Ramsey, respectively. We show that, in both cases, open-loop and...

This paper examines the equivalence among price-modifying and quantity-fixing international trade policies in a differential game. We employ two well-known capital accumulation dynamics for firms, due to Nerlove and Arrow and to Ramsey, respectively. We show that, in both cases, open-loop and...

This paper examines the impact of voluntary export restraints (VERs) in an international duopoly modelled as a differential game. With a Ramsey capital accumulation dynamics, the game admits multiple steady states, and a VER cannot be 'voluntarily' employed by the foreign firm in case of Cournot...