Strategic trade policy in a Cournot oligopoly with convex cost

Mukherjee, Arijit; Sinha, Uday Bhanu

Abstract

We provide a simple reason for export tax in a third-country model of strategic trade policy. We show that the optimal policy under Cournot competition could be export tax in the presence of convex production costs. This happens whether or not the import competing country imposes import tariff.

Citation

Mukherjee, A., & Sinha, U. B. (online). Strategic trade policy in a Cournot oligopoly with convex cost. Foreign Trade Review, https://doi.org/10.1177/00157325241266040

• Journal Article Type: Article
• Acceptance Date: May 29, 2024
• Online Publication Date: Aug 16, 2024
• Deposit Date: Jun 7, 2024
• Publicly Available Date: Jun 7, 2024
• Journal: Foreign Trade Review
• Print ISSN: 0015-7325
• Electronic ISSN: 0971-7633
• Publisher: SAGE Publications
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1177/00157325241266040
• Keywords: Convex cost; Export tax; Strategic trade policy; Third-country model
• Public URL: https://nottingham-repository.worktribe.com/output/35734175
• Publisher URL: https://journals.sagepub.com/doi/10.1177/00157325241266040