Protectionism versus non-protectionism under cost uncertainty in Cournot and Stackelberg markets


Orbay B.

3rd International Meeting of the Society-for-the-Advancement-of-Economic-Theory, Antalya, Türkiye, 01 Haziran 1997, cilt.8, ss.347-365 identifier

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Cilt numarası: 8
  • Basıldığı Şehir: Antalya
  • Basıldığı Ülke: Türkiye
  • Sayfa Sayıları: ss.347-365

Özet

This paper compares optimal protectionist trade policies with optimal non-protectionist policies in an environment where governments have private information about the marginal costs of the domestic: firms. A country with an efficient firm is always better off not protecting its firm and subsidizing both domestic and foreign firms compared to being protectionist by taxing imports. However, under some circumstances, a country with an inefficient firm does better being protectionist and taxing:imports.