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Implementing Results-Oriented Trade Policies: The Case of the US-Japanese Auto Parts Dispute

Kala Krishna () and John Morgan

No 5680, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share may be implemented with fairly weak informa- tional and administrative requirements. Moreover, such policies can be both pro-competitive and advatageous to US firms.

JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 1996-07
Note: ITI
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Published as European Economic Review, Vol.42, no.8 (October 1998): 1443-1467.

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