TY - JOUR
T1 - Strategic trade policy under uncertainty
AU - QIU, Larry D.
N1 - This paper is based on Qiu's first essay of his Ph.D. dissertation at the University of British Columbia. Financial support from the Hong Kong Research Grant Council (HKUST DAG93/94.BM13) is gratefully acknowledged.
PY - 1995/2
Y1 - 1995/2
N2 - This paper extends the Brander‐Spencer (1985) model by considering market uncertainty, exploring nonlinear policy, and examining firms' choices of strategic variables. By investigating the interrelationship between trade policy and market conduct, we find that unlike the often‐studied linear policy, a nonlinear policy can influence the domestic firm's choice of strategic variables and hence alter the market conduct in favor of the domestic country. Therefore, a nonlinear policy proves strictly superior to a linear one.
AB - This paper extends the Brander‐Spencer (1985) model by considering market uncertainty, exploring nonlinear policy, and examining firms' choices of strategic variables. By investigating the interrelationship between trade policy and market conduct, we find that unlike the often‐studied linear policy, a nonlinear policy can influence the domestic firm's choice of strategic variables and hence alter the market conduct in favor of the domestic country. Therefore, a nonlinear policy proves strictly superior to a linear one.
UR - http://www.scopus.com/inward/record.url?scp=84982706230&partnerID=8YFLogxK
U2 - 10.1111/j.1467-9396.1995.tb00053.x
DO - 10.1111/j.1467-9396.1995.tb00053.x
M3 - Journal Article (refereed)
SN - 0965-7576
VL - 3
SP - 75
EP - 85
JO - Review of International Economics
JF - Review of International Economics
IS - 1
ER -