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Information and Disclosure in Strategic Trade Policy: Revisited

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Listed:
  • Fabio Antoniou
  • Nikos Tsakiris

Abstract

In a recent paper, Creane and Miyagiwa (J Int Econ 75:229–244, 2008 ) show that the mode of competition determines whether information sharing occurs between firms and governments within an international duopoly context in which the firms are located in different countries. In this paper, we show that when a price instrument is implemented to control exports, then the relative number of firms located in each country is also critical. In particular, we illustrate that with quantity competition and under the presence of demand and cost uncertainty, information sharing does not occur when the number of firms in one country is higher than the number of firms in the other country and vice-versa. However, when direct quantity controls are implemented the number of firms is irrelevant and information sharing always occurs. Moreover, we show that the informational prisoner’s dilemma restricts only to the case where subsidies are implemented in both countries when the number of firms across countries is equal. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Fabio Antoniou & Nikos Tsakiris, 2014. "Information and Disclosure in Strategic Trade Policy: Revisited," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 415-427, September.
    • Handle: RePEc:kap:jincot:v:14:y:2014:i:3:p:415-427
    DOI: 10.1007/s10842-013-0163-z
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    References listed on IDEAS

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    1. Creane, Anthony & Miyagiwa, Kaz, 2008. "Information and disclosure in strategic trade policy," Journal of International Economics, Elsevier, vol. 75(1), pages 229-244, May.
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    7. S. Lael Brainard & David Martimort, 1996. "Strategic Trade Policy Design with Asymmetric Information and Public Contracts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(1), pages 81-105.
    8. Qiu, Larry D, 1995. "Strategic Trade Policy under Uncertainty," Review of International Economics, Wiley Blackwell, vol. 3(1), pages 75-85, February.
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    More about this item

    Keywords

    Information; Uncertainty; Strategic trade; Multiple firms; F12; F18; Q58;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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