Strategic Trade and Industrial Policy Towards Dynamic Oligopolies.
We characterize optimal trade and industrial policy in dynamic oligopolistic markets. If governments can commit to future policies, optimal first-period intervention should diverge from the profit-shifting benchmark to an extent which exactly offsets the strategic behaviour implied by Fudenberg and...
| Հիմնական հեղինակներ: | , |
|---|---|
| Ձևաչափ: | Working paper |
| Լեզու: | English |
| Հրապարակվել է: |
CEPR
1998
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| _version_ | 1826302447176384512 |
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| author | Leahy, D Neary, J |
| author_facet | Leahy, D Neary, J |
| author_sort | Leahy, D |
| collection | OXFORD |
| description | We characterize optimal trade and industrial policy in dynamic oligopolistic markets. If governments can commit to future policies, optimal first-period intervention should diverge from the profit-shifting benchmark to an extent which exactly offsets the strategic behaviour implied by Fudenberg and Tirole's 'fat cats and top dogs' taxonomy of business strategies. Without government commitment, there is an additional basis for intervention, whose sign depends on the strategic substitutability between future policy and current actions. We consider a variety of applications (to R&D; spillovers, consumer switching costs, etc.) and extensions to second-best, revenue-constrained and entry-promotion policies. |
| first_indexed | 2024-03-07T05:47:41Z |
| format | Working paper |
| id | oxford-uuid:e7c23383-9874-4f1e-a9e6-21ad689d657f |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T05:47:41Z |
| publishDate | 1998 |
| publisher | CEPR |
| record_format | dspace |
| spelling | oxford-uuid:e7c23383-9874-4f1e-a9e6-21ad689d657f2022-03-27T10:41:23ZStrategic Trade and Industrial Policy Towards Dynamic Oligopolies.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:e7c23383-9874-4f1e-a9e6-21ad689d657fEnglishDepartment of Economics - ePrintsCEPR1998Leahy, DNeary, JWe characterize optimal trade and industrial policy in dynamic oligopolistic markets. If governments can commit to future policies, optimal first-period intervention should diverge from the profit-shifting benchmark to an extent which exactly offsets the strategic behaviour implied by Fudenberg and Tirole's 'fat cats and top dogs' taxonomy of business strategies. Without government commitment, there is an additional basis for intervention, whose sign depends on the strategic substitutability between future policy and current actions. We consider a variety of applications (to R&D; spillovers, consumer switching costs, etc.) and extensions to second-best, revenue-constrained and entry-promotion policies. |
| spellingShingle | Leahy, D Neary, J Strategic Trade and Industrial Policy Towards Dynamic Oligopolies. |
| title | Strategic Trade and Industrial Policy Towards Dynamic Oligopolies. |
| title_full | Strategic Trade and Industrial Policy Towards Dynamic Oligopolies. |
| title_fullStr | Strategic Trade and Industrial Policy Towards Dynamic Oligopolies. |
| title_full_unstemmed | Strategic Trade and Industrial Policy Towards Dynamic Oligopolies. |
| title_short | Strategic Trade and Industrial Policy Towards Dynamic Oligopolies. |
| title_sort | strategic trade and industrial policy towards dynamic oligopolies |
| work_keys_str_mv | AT leahyd strategictradeandindustrialpolicytowardsdynamicoligopolies AT nearyj strategictradeandindustrialpolicytowardsdynamicoligopolies |