haku: @author Syropoulos, C. / yhteensä: 8
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| Tekijä: | Syropoulos, C. |
| Otsikko: | Nontariff trade controls and leader-follower relations in international competition |
| Lehti: | Economica
1996 : NOV, VOL. 63:252, p. 633-648 |
| Asiasana: | ECONOMICS TRADE COMPETITION |
| Kieli: | eng |
| Tiivistelmä: | A simple duopoly model is constructed in which leader- follower relations arise as part of a subgame-perfect equilibrium in a game of endogenous timing. The author shows that, in the absence of policy intervention, cost asymmetries between firms can help sustain collusive hierarchical organization of markets. On the basis of this model, the author then analyzes the effects of VERs and import quotas in the presence of foreign and international duopolies. This analysis reveals that, in contrast to the existing literature, these nontariff trade controls can break the stability of leader-follower relations and thereby raise an importing country's welfare. |
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