Author: Aldo RustichiniPublisher:
ISBN:
Category :
Languages : en
Pages : 658
Book Description
Flexibility Versus Commitment in Strategic Trade Policy Under Uncertainty
Author: Aldo RustichiniStrategic Trade Policies with Uncertainty about the Mode of Inter-firm Competition
Author: Giovanni MaggiStrategic Trade Policy Under Uncertainty
Author: Simon GrantPublisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 44
Book Description
Uncertainty, Market Structure and Strategic Trade Policy
Author: Haokai NingPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
We introduce demand uncertainty into the context of strategic trade policy in an export rivalry market model, and we examine endogenous timing in the framework of Cournot-Stackelberg duopoly when firms decide in the first stage whether to set output level before or after resolution of uncertainty. In the absence of government intervention, both Cournot outcome and Stackelberg outcome could emerge in the equilibrium depending on market volatility and cost difference between firms. Under bilateral export subsidies, both firms tend to prefer making output decisions after the resolution of uncertainty which yields only the Cournot market structure. This result holds for any degrees of uncertainty, regardless whether the firm has cost advantage over its rival or not.
Uncertainty Resolution and Strategic Trade Policy in Oligopolistic Industries
Author: Mustafa O. CaglayanPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper investigates a government's choice of strategic trade policy when the domestic firm observes a private noisy signal about the stochastic market demand while in competition with a rival firm. The government chooses between quantity controls and subsidies to maximize profits of the domestic firm. Assuming that firms compete a la Cournot in a third country, we show that the optimal trade policy depends not only on demand uncertainty but also on the predictability of the true market demand by the firms.
Flexibility Versus Commitment in Strategic Trade Policy Under Uncertainty
Author: Lanny David ArvanStrategic Trade Policy
Author: Gene M. GrossmanStrategic Trade Policy with Incompletely Informed Policymakers
Author: S. Lael BrainardPublisher:
ISBN:
Category : Commercial policy
Languages : en
Pages : 39
Book Description
Abstract: Ever since the inception of research on strategic trade policy, economists have warned that the informational requirements are high, and unlikely to be met in practice. This paper investigates the implications of incomplete information for a simple, rent-shifting trade policy of the type proposed in Brander-Spencer (1985). We find that asymmetric information undermines the precommitrnent effect of unilateral government intervention. This "screening" effect induces a downward distortion in the optimal subsidy, and it may be so great as to require a tax rather than a subsidy for high levels of uncertainty, given a zero-profit participation constraint. Second, in contrast to the full-information case with strategic substitutes, the introduction of a rival interventionist government reinforces rather than countervails the precommitment effect, by reducing the incentive for the domestic firm to misrepresent its private information. Finally, when a nonintervention-profit participation constraint is substituted for the conventional zero-profit participation constraint to take into account the special relationship between firms and policymakers in trade, the government eschews intervention altogether for high levels of uncertainty.
Strategic Trade Policy and the New International Economics
Author: Paul R. KrugmanPublisher: MIT Press
ISBN: 9780262610452
Category : Business & Economics
Languages : en
Pages : 330
Book Description
This volume of original essays brings the practical world of trade policy and of government and business strategy together with the world of academic trade theory. It focuses in particular on the impact of changes in the international trade environment and on how new developments and theory can guide our trade policy.Contents: New Thinking about Trade Policy, Paul Krugman (Sloan School of Management, MIT). Rationales for Strategic Trade and Industrial Policy, James A. Brander (University of British Columbia). Strategic Export Promotion: A Critique, Gene M. Grossman (Woodrow Wilson School, Princeton University). Government Policy and the Dynamics of International Competition in High Technology, Michael Borrus, Laura d'Andrea Tyson, and John Zysman (all at the University of California, Berkeley). What Should Trade Policy Target? Barbara Spencer (University of British Columbia). Credit Policy and International Competition, Jonathan Eaton (University of Virginia). Industrial Policy: An Overview, Geoffrey Carliner (National Bureau of Economic Research). Japan's Industrial Strategy, Kozo Yamamura (University of Washington). U.S. Trade and Industrial Policy, William R. Cline (Institute for International Economics). Strategic Behavior and Trade Policy, Alvin K. Klevorick (Yale University) and William Branson (Princeton University). The New Political Economy of Trade Policy, J. David Richardson, (University of Wisconsin). Trade Policy: An Agenda for Research, Avinash K. Dixit (Woodrow Wilson School, Princeton University).Paul Krugman is Professor of Economics at MIT. A former member of the staff of the Council of Economic Advisers, Krugman is also coauthor, with Elhanan Helpman, of Market Structure and Foreign Trade (MIT Press 1985).
Strategic Trade Policy, Spillovers, and Uncertain Mode of Competition
Author: Krešimir ŽigićPublisher:
ISBN: 9788090232549
Category :
Languages : en
Pages : 37
Book Description