Attitudes toward Foreign Products and International Price Competition

Damien Neven, George Norman () and Jacques Thisse

Canadian Journal of Economics, 1991, vol. 24, issue 1, 1-11

Abstract: In this paper we analyze price competition between firms established in different countries when demand is sensitive to national biases. The intensity of this bias varies across consumers. In this context, trade arises because of the dispersion of consumers' perception of the foreign good; when consumer attitudes are diverse enough, one firm concentrates on consumers with an intensive bias, leaving room for the other, which will serve consumers with a low bias. Next, an increase in import tariff will unambiguously lead to a general increase in price, since, in equilibrium, the domestic firm will decide to increase margins. Finally, we identify conditions under which "Buy Domestic" campaigns increase local welfare and output.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819910 ... TFPAI%3E2.0.CO%3B2-P (text/html)
only available to JSTOR subscribers

Related works:
Working Paper: Attitudes towards foreign products and international price competition (1991)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:24:y:1991:i:1:p:1-11

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().