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Strategic Trade Policy in a Vertically Related Industry

Daniel Bernhofen ()

Review of International Economics, 1997, vol. 5, issue 3, 429-33

Abstract: This paper investigates strategic export intervention in a final-good industry which uses an intermediate good supplied by a foreign monopolist. An export tax-cum-subsidy leads to horizontal and vertical rent extraction. The optimal government intervention in the final-good market is shown to depend on the pricing scheme employed by the intermediate-good producer. Copyright 1997 by Blackwell Publishing Ltd.

Date: 1997
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