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| Author: | Raff, H. Kim, Y. |
| Title: | Optimal export policy in the presence of informational barriers to entry and imperfect competition |
| Journal: | Journal of International Economics
1999 : OCT, VOL. 49:1, p. 99-123 |
| Index terms: | ECONOMICS EXPORTING IMPERFECT COMPETITION |
| Language: | eng |
| Abstract: | This paper examines government intervention to help exporters overcome informational barriers to entry into foreign markets. Foreign consumers know the quality of a local good but not that of the imported substitute. An exporter who chooses high quality needs to signal this choice to foreign consumers via a high introductory price. Export policy affects both the signaling distortion and competition between exporter and incumbent. |
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