Strategic Trade Policy in a Cournot Oligopoly with Convex Cost
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. JEL Codes: F12, F13
Authors
- Uday Bhanu Sinha (ORCID: https://orcid.org/0000-0002-3079-3035)
- Arijit Mukherjee (ORCID: https://orcid.org/0000-0002-9611-2888)
Institutions
- University of Delhi (IN)
- Ifo Institute for Economic Research (DE)
- University of Nottingham (GB)
- City University of Hong Kong (HK)
- Centre for Development Economics (IN)
Publication Details
- Journal
- Foreign Trade Review
- Published
- 2024-08-16
- DOI
- https://doi.org/10.1177/00157325241266040
- Citations
- 1
- Primary Topic
- Global trade and economics
- Type
- article
- Field-Weighted Citation Impact
- 0.83