| Tekijä: | Laussel, D. |
| Otsikko: | Strategic commercial policy revisited: A supply-function model revisited |
| Lehti: | American Economic Review
1992 : MAR, VOL. 82:1, p.84-99 |
| Asiasana: | TRADE POLICY SUBSIDIES GOVERNMENT COMPETITION BUSINESS-GOVERNMENT RELATIONS |
| Kieli: | eng |
| Tiivistelmä: | A model is considered in which one firm in each of two countries produces a homogeneous good and sells it exclusively to a third country. Each firm simultaneuosly selects a supply function before a demand shock occurs. The model assumes that the home government can precommit to a subsidy function, inducing the firms to select steeper supply functions for softening the competition. Optimal marginal subsidy rate is shown to decrease with domestic exports. The strategic complementarity between slopes of the supply functions is the major point to these results. |
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