ON THE ENDOGENOUS TIMlNG IN TRADE POLICY GAME FA GENERAL CASE

Tsuyoshi Toshimitsu

No 20, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper discusses the timing and the optimal trade policy in the presence of oligopolisitic industries and free entry. Collie (1994) proved that an importing government should not commit a countervailing duty in response to a foreign export subsidy. We show that his main conclusion does not always hold, since the timing, as well as the optimal trade policy, depends on the number of firms in both countries and the characteristic of the industry, i.e. no entry or free entry.

Pages: 35 pages
Date: 1997-10, Revised 1997-10
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