Export Subsidies as Signals of Competitiveness
Export Subsidies as Signals of Competitiveness
复制标题
出口补贴作为竞争力的信号
DOI:
10.2307/3440359
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发表时间:
1993
期刊:
影响因子:
--
通讯作者:
M. Hviid
中科院分区:
文献类型:
--
作者:
D. Collie;M. Hviid
In a Cournot duopoly model of international competition between a domestic and foreign firm, it is shown that when the foreign firm has incomplete information about the marginal cost of the domestic firm then the domestic government can use an export subsidy to signal the competitiveness of its firm. This signaling effect strengthens the usual profit-shifting argument for an export subsidy. The optimal export subsidy in the signaling equilibrium may be twice as large as the optimal profit-sharing export subsidy under complete information. Copyright 1993 by The editors of the Scandinavian Journal of Economics.