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ENDOGENOUS TIMING IN TRADE-POLICY GAMES - SHOULD GOVERNMENTS USE COUNTERVAILING DUTIES
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UNSPECIFIED (1994) ENDOGENOUS TIMING IN TRADE-POLICY GAMES - SHOULD GOVERNMENTS USE COUNTERVAILING DUTIES. In: Econometric-Society European Meeting, UPPSALA, SWEDEN, AUG, 1993. Published in: WELTWIRTSCHAFTLICHES ARCHIV-REVIEW OF WORLD ECONOMICS, 130 (1). pp. 191-209. ISSN 0043-2636.
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Abstract
Trade policy under oligopoly is analysed in two multistage games with endogenous timing of trade policy. At the beginning of the games, the domestic and foreign governments choose whether to set trade policy at stage one of two. It is shown that in the subgame perfect equilibrium of both games, the domestic government will set its tariff (and production subsidy) at stage one and the foreign government its export subsidy at stage two. The domestic country commits not to use a countervailing duty in both games, and both countries are better off than when they set trade policy simultaneously. JEL No. F12, F13
Item Type: | Conference Item (UNSPECIFIED) | ||||
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Subjects: | H Social Sciences > HC Economic History and Conditions J Political Science > JZ International relations |
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Journal or Publication Title: | WELTWIRTSCHAFTLICHES ARCHIV-REVIEW OF WORLD ECONOMICS | ||||
Publisher: | J C B MOHR | ||||
ISSN: | 0043-2636 | ||||
Official Date: | 1994 | ||||
Dates: |
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Volume: | 130 | ||||
Number: | 1 | ||||
Number of Pages: | 19 | ||||
Page Range: | pp. 191-209 | ||||
Publication Status: | Published | ||||
Title of Event: | Econometric-Society European Meeting | ||||
Location of Event: | UPPSALA, SWEDEN | ||||
Date(s) of Event: | AUG, 1993 |
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