Differentiated Products, Vertical Related Markets, and Optimal Export Policy
Differentiated Products, Vertical Related Markets, and Optimal Export Policy
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差异化产品、垂直相关市场和最优出口政策
DOI:
10.1111/j.1467-9396.2011.00958.x
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发表时间:
2011
期刊:
影响因子:
--
通讯作者:
Stephen Jui‐Hsien Chou
中科院分区:
文献类型:
--
作者:
Stephen Jui‐Hsien Chou
This paper studies the optimal export policy in the context of a vertically related industry with differentiated products, and analyzes the effects of the degree of product substitutability and market structure on the determination of such a policy. It is shown that the results obtained in a similar model with homogeneous goods rivalry no longer hold when the goods are differentiated. Indeed, the degree of product substitutability plays an important role in the determination of export policies, and also determines whether a country can be better off under a trade policy war compared to free trade. The use of a differentiated product setting also allows one to compare export policies and countries' welfare levels under both Cournot and Bertrand competition. It is found that the results of the comparison are also sensitive to the degree of product substitutability.