EXPORT SUBSIDIES AND SWITCHING COSTS IN AN IMPERFECTLY COMPETITIVE INTERNATIONAL WHEAT MARKET

Panu K.S. Kallio and Philip Abbott

No 20789, 1998 Annual meeting, August 2-5, Salt Lake City, UT from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Switching costs affect importer decisions, hence impacts of subsidies over time. Dynamic, game theoretic simulations of EU-US competition for Moroccan wheat imports suggest firms charge lower prices and governments award higher subsidies with switching costs. Policy under alternative institutional arrangements depends on the extent of switching costs, measured here econometrically.

Keywords: Crop Production/Industries; Industrial Organization; International Relations/Trade (search for similar items in EconPapers)
Pages: 16
Date: 1998
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea98:20789

DOI: 10.22004/ag.econ.20789

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