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Optimal transport and trade policy under Bertrand competition in the presence of restricted geographical condition

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  • Normizan Bakar

Abstract

To analyse the optimal landlocked and coastal countries' policies in an international imperfect competition. In particular the model shows the rivalry condition of the landlocked country's firm and coastal country's firm. In addition, we incorporates the interdependent condition of the landlocked country on its coastal seaport.The model assumes the three-stage game of international duopolists where; At first stage governments determine the trade policies; at the second stage governments determine the transport policies;and at the third stage the firms determine the price.The transport policy, i.e. toll fee by the coastal country (transit country) is positive.

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  • Normizan Bakar, 2013. "Optimal transport and trade policy under Bertrand competition in the presence of restricted geographical condition," International Conference on Energy, Regional Integration and Socio-economic Development 6004, EcoMod.
    • Handle: RePEc:ekd:005741:6004
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    Keywords

    landlocked countries; Trade and regional integration; Other issues;
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