Cost Heterogeneity, Industry Concentration and Startegic Trade Policies

Ngo Long and Antoine Soubeyran

G.R.E.Q.A.M. from Universite Aix-Marseille III

Abstract: This paper shows that if domestic firms do not have identical unit costs, then the interplay between the Herfindahl index of concentration and the elasticity of the slope of the demand curve is of major importance in the determination of optimal trade policies. When the demand curve is concave, an export tax will shift the domestic industry's concentration in favor of lower cost firms, resulting in an improvement in allocative production efficiency.

Keywords: MARKET STRUCTURE; TRADE POLICY; OLIGOPOLIES (search for similar items in EconPapers)
JEL-codes: D43 F13 (search for similar items in EconPapers)
Pages: 20 pages
Date: 1996
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Cost heterogeneity, industry concentration and strategic trade policies (1997)
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:fth:aixmeq:96a39

Access Statistics for this paper

More papers in G.R.E.Q.A.M. from Universite Aix-Marseille III G.R.E.Q.A.M., (GROUPE DE RECHERCHE EN ECONOMIE QUANTITATIVE D'AIX MARSEILLE), CENTRE DE VIEILLE CHARITE, 2 RUE DE LA CHARITE, 13002 MARSEILLE.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().