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Two-stage game models of international oligopoly
Leahy, Dermot
This paper reexamines the import protection as export promotion thesis in a series of two-stage games in which firms choose R&D and/or capacity in the first stage and quantity or price in the second. It is shown that a tariff affects exports in two ways; firstly, if marginal cost is increasing, by raising home sales directly it crowds out exports; secondly by increasing R&D and/or capacity it raises exports indirectly. Prospects for export enhancing protection are compared for different games and shown to be better in the long run than in the short run. A hard copy is available in UCD Library at GEN 330.08 IR/UNI
Keyword(s): F12; Foreign trade regulation--Econometric models; Foreign trade promotion--Econometric models; Import quotas--Econometric models; Oligopolies
Publication Date:
Type: Working paper
Peer-Reviewed: Unknown
Language(s): English
Institution: University College Dublin
Publisher(s): University College Dublin. School of Economics
File Format(s): other; application/pdf
First Indexed: 2012-08-25 05:22:10 Last Updated: 2018-10-11 15:42:04