Durability and strategic trade - Are there rents to be captured?

• 成果类型: Article
• 署名作者: Driskill, RA; Horowitz, AW
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(95)01416-0
• 发表日期: 1996
• 页码: 179-194
• 关键词: durability; strategic trade

摘要

This paper analyzes strategic trade policy when home and foreign duopolists produce a durable good that is either sold or leased in a third country. Durability is important for two reasons: it characterizes most of the products discussed in the strategic trade literature, and it also calls for explicit dynamic modeling. For duopolists who sell their product in a third-country market, this paper finds the optimal policy to be a tax on domestic output. For duopolists who lease the good in a third-country market, though, the optimal policy is a subsidy.