Strategic Trade Policy in a Cournot Oligopoly with Convex Cost

Arijit Mukherjee and Uday Bhanu Sinha

Foreign Trade Review, 2025, vol. 60, issue 2, 226-232

Abstract: 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

Keywords: Convex cost; export tax; strategic trade policy; third-country model (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:fortra:v:60:y:2025:i:2:p:226-232

DOI: 10.1177/00157325241266040

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