Article
STRATEGIC EXPORT PROMOTION AND IMPORT PROTECTION IN A MULTI - STAGE GAME
This paper presents a three-stage trade policy game between one importing country and one exporting country in which the formulation of trade policy is distinguished from its administration. The salient feature of this g ame is that both countries have the opportunity to choose a free trade policy. The author shows that there alw ays exists a subgame perfect equilibrium in which the exporting country chooses the free trade policy and the importing country chooses an import tariff or quota.
Subjects
Details
-
FromCanadian Journal of Economics, Aug.95, pp.586-602