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Security and Price Arbitrage

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  • María del Carmen García-Alonso

Abstract

We examine the effect of international price arbitrage on the effectiveness of unilateral export controls. The restriction on the quality of exports of security sensitive products limits the outside option of domestic customers: if the product available on the international market is of low quality the firm can charge a high price to domestic customers for its latest technology. This effect leads the government to set looser export controls on security sensitive products.

Suggested Citation

  • María del Carmen García-Alonso, 2000. "Security and Price Arbitrage," Studies in Economics 0002, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:0002
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    File URL: https://www.kent.ac.uk/economics/repec/0002.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Arms Control; Price Arbitrage;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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