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International Capacity Choice and National Market Games.

Abstract:

A series of models are developed in which international trade is modelled as a two-stage game between firms in two countries. At the first stage firms choose their productive capacity. At the second stage different types of market game are played. The most interesting case is that in which firms play a separate price game in each national market, given their worldwide capacity levels. It is established that (i) firms use capacity strategically, in order to manipulate the distribution of rival...

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Authors


Anthony J Venables More by this author
Volume:
277
Publication date:
1988
URN:
uuid:973958a0-e0b0-4679-afdb-7d683f44580d
Local pid:
oai:economics.ouls.ox.ac.uk:11652
Language:
English

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