Optimal Export Policy with Upstream Price Competition PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Optimal Export Policy with Upstream Price Competition PDF full book. Access full book title Optimal Export Policy with Upstream Price Competition by Tomomichi Mizuno. Download full books in PDF and EPUB format.
Author: Tomomichi Mizuno Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We present a third-market model with a vertical trading structure, in which upstream input suppliers engage in homogeneous price competition. We show that, under downstream Bertrand competition, a non-monotonic export policy may result. Specifically, the optimal policy of the exporting country can turn into a tax-subsidy-tax as the degree of product substitutability rises. We also confirm the conventional result for which the optimal policy is an export subsidy (tax) if there is Cournot (Bertrand) competition downstream, provided that the number of domestic suppliers is at an intermediate level. We further discuss bilateral policy interventions when both exporting countries offer a subsidy/tax to their domestic downstream firms. We show that a non-monotonic export policy (tax-subsidy-tax) can arise even in this extended setting.
Author: Tomomichi Mizuno Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We present a third-market model with a vertical trading structure, in which upstream input suppliers engage in homogeneous price competition. We show that, under downstream Bertrand competition, a non-monotonic export policy may result. Specifically, the optimal policy of the exporting country can turn into a tax-subsidy-tax as the degree of product substitutability rises. We also confirm the conventional result for which the optimal policy is an export subsidy (tax) if there is Cournot (Bertrand) competition downstream, provided that the number of domestic suppliers is at an intermediate level. We further discuss bilateral policy interventions when both exporting countries offer a subsidy/tax to their domestic downstream firms. We show that a non-monotonic export policy (tax-subsidy-tax) can arise even in this extended setting.
Author: Winston W. Chang Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
The paper introduces the conjectural variations and bargaining approaches into a vertical model, wherein a foreign upstream firm supplies one input to two downstream firms that produce differentiated products for the export market. Various downstream firms' competition modes and upstream's pricing schemes emerge as special cases of this formulation. The authors show that the optimal export policy of a downstream country depends crucially on the downstream firms' conjectures of rivals' responses, the upstream firm's pricing schemes, their relative bargaining powers, and the degree of product differentiation. If the upstream's pricing or bargaining power is strong (weak) and if the downstream's degree of competition is high (low), a tax (subsidy) is optimal owing to a strong (weak) vertical profit-shifting effect and a weak (strong) horizontal effect.
Author: Einar Hope Publisher: Routledge ISBN: 1134704585 Category : Business & Economics Languages : en Pages : 385
Book Description
The relationship between competition and trade policies, and the development of an effective competition policy for an integrated world economy, is one of the most important and challenging issues policy makers currently face. This book examines the current debates around competition and trade policy interactions, and discusses the need for new policy initiatives in an international context.
Author: Hong Hwang Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
In a seminal paper, Eaton and Grossman (1986) conclude that an export tax is optimal if firms produce heterogeneous products and engage in Bertrand price competition. In particular, they made a comment that could be interpreted to mean that even in the case of a homogeneous product, the optimal policy is still an export tax. This paper has re-examined the case and found that the optimal export policy can be an export subsidy, free trade, or an export tax, depending on the marginal cost differential between the domestic and the foreign firms. Moreover, if government intervention entails a cost, free trade becomes the only optimal policy.
Author: Winston Chang Publisher: Springer Science & Business Media ISBN: 1461522498 Category : Business & Economics Languages : en Pages : 276
Book Description
A theoretical analysis of international trade and industrial policy, developing and using new models of trade with imperfect competition. Modeling of imperfect competition within international trade has been difficult until recent breakthroughs in this area, which have provided a more realistic view of the world economy. The book builds on the advances provided by such tools as game theory and the theory of monopolistic competition. The first section covers broad and basic trade issues which arise under imperfect competition. Section two examines implications for trade policy covering issues such as strategic trade policy in static and dynamic settings. Section three deals with various structural issues, such as optimal choice of trade liberalizing policies, the formation of trade blocks, and open dualistic economy with externalities.
Author: M. J. Trebilcock Publisher: Routledge ISBN: 0415610893 Category : Business & Economics Languages : en Pages : 961
Book Description
This book introduces the rules and institutions that govern international trade. The authors draw their analysis on aspects of the subject from classic and contemporary literature on trade and political economy
Author: Tomomichi Mizuno
Author: Tomomichi Mizuno
Author: Winston W. Chang
Author: Cem Işık
Author: Einar Hope
Author: Hong Hwang
Author: Winston Chang
Author: M. J. Trebilcock
Author: Richard E. Just
Author: Centre for Economic Policy Research (Gran Bretanya)
Author: Marc L. Busch