IDEAS home Printed from https://ideas.repec.org/p/kob/dpaper/84.html
   My bibliography  Save this paper

Imperfect Substitutes and Trade Policy under Cournot Duopoly

Author

Listed:
  • Seiichi Katayama

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Hiroshi Ohta

Abstract

We study a duopoly model of trade and its trade policy. The two country trade model to be discussed is the following. There are three goods (0,1 and 2). Good 0 is produced by perfectly competitive firms, and the good 1 and the good 2 are imperfect substitutes, each produced by a home and a foreign monopolist respectively. The good 1 and the good 2 are produced with nonlinear cost functions. Each monopolist behaves in Cournot fashion. The home country can consider an import tariff and / or an export subsidy as policy instruments. In this paper we shall consider the uniqueness of the general equilibrium solution and the policy effects of tariffs and subsidy. Comparative static analysis in terms of an import tariff and an export subsidy is presented. The paper also considers the home country's policy implications of an import tariff and an export subsidy on production, trade, and consumption of each country's good, and on the welfare of each country and the world as a whole.

Suggested Citation

  • Seiichi Katayama & Hiroshi Ohta, 1997. "Imperfect Substitutes and Trade Policy under Cournot Duopoly," Discussion Paper Series 84, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:84
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Trade; Duopolies; General equilibrium;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kob:dpaper:84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Office of Promoting Research Collaboration, Research Institute for Economics & Business Administration, Kobe University (email available below). General contact details of provider: https://edirc.repec.org/data/rikobjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.