Assisting Domestic Industries under International Oligopoly: The Relevance of the Nature of Competition to Optimal Policies

Abstract

Optimal trade and industrial policies are derived for a home market that is supplied by a domestic firm and a foreign firm. The optimal policy combination can be quite sensitive to the nature of the duopoly's competition. For example, for some cost and demand s tructures, the optimal policy under Cournot competition consists of a domestic production tax and a tariff, but that under Bertrand compet ition consists of a production subsidy and free trade. Copyright 1988 by American Economic Association.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 79 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.