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Strategic trade policy under asymmetric oligopoly

Collie, David Robert 1993. Strategic trade policy under asymmetric oligopoly. European Journal of Political Economy 9 (2) , pp. 275-280. 10.1016/0176-2680(93)90022-M

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Models of trade policy under oligopoly usually assume symmetry, in each country all firms are identical, but this paper analyses trade policy under asymmetric oligopoly. It is shown that under asymmetric oligopoly trade policy has a rationalisation effect which does not occur under symmetric oligopoly. The size of the rationalisation effect depends upon the convexity of demand and the variation of industry output. The rationalisation effect may strengthen or weaken the argument for strategic trade policy.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Elsevier
ISSN: 0176-2680
Last Modified: 04 Jun 2017 06:37

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