Price competition between two international firms facing tariffs

Eric O.N. Fisher; Charles A. Wilson

doi:10.1016/0167-7187(94)00443-6

Price competition between two international firms facing tariffs

Eric O.N. Fisher, Charles A. Wilson

Research output: Contribution to journal › Article › peer-review

Abstract

This paper examines the effects of tariffs on price-setting duopolists selling a homogeneous product. The producers cannot segment geographically distinct markets. It provides a complete characterization of the equilibrium (mixed) strategies and analyzes the pattern of competition for different tariffs. If a country raises its tariff, the profits of both producers increase, although the protected firm typically benefits more than its foreign counterpart. Growth in one market may reduce the profits of the firm located in the other market.

Original language	English (US)
Pages (from-to)	67-87
Number of pages	21
Journal	International Journal of Industrial Organization
Volume	13
Issue number	1
DOIs	https://doi.org/10.1016/0167-7187(94)00443-6
State	Published - Mar 1995

Keywords

Anti-dumping
Commercial policy
Imperfect competition

ASJC Scopus subject areas

Industrial relations
Aerospace Engineering
Economics and Econometrics
Economics, Econometrics and Finance (miscellaneous)
Strategy and Management
Industrial and Manufacturing Engineering

Access to Document

10.1016/0167-7187(94)00443-6

Cite this

@article{4c90c538c90847f19f73f8c8bfa162a9,

title = "Price competition between two international firms facing tariffs",

abstract = "This paper examines the effects of tariffs on price-setting duopolists selling a homogeneous product. The producers cannot segment geographically distinct markets. It provides a complete characterization of the equilibrium (mixed) strategies and analyzes the pattern of competition for different tariffs. If a country raises its tariff, the profits of both producers increase, although the protected firm typically benefits more than its foreign counterpart. Growth in one market may reduce the profits of the firm located in the other market.",

keywords = "Anti-dumping, Commercial policy, Imperfect competition",

author = "Fisher, {Eric O.N.} and Wilson, {Charles A.}",

year = "1995",

month = mar,

doi = "10.1016/0167-7187(94)00443-6",

language = "English (US)",

volume = "13",

pages = "67--87",

journal = "International Journal of Industrial Organization",

issn = "0167-7187",

publisher = "Elsevier Inc.",

number = "1",

}

TY - JOUR

T1 - Price competition between two international firms facing tariffs

AU - Fisher, Eric O.N.

AU - Wilson, Charles A.

PY - 1995/3

Y1 - 1995/3

N2 - This paper examines the effects of tariffs on price-setting duopolists selling a homogeneous product. The producers cannot segment geographically distinct markets. It provides a complete characterization of the equilibrium (mixed) strategies and analyzes the pattern of competition for different tariffs. If a country raises its tariff, the profits of both producers increase, although the protected firm typically benefits more than its foreign counterpart. Growth in one market may reduce the profits of the firm located in the other market.

AB - This paper examines the effects of tariffs on price-setting duopolists selling a homogeneous product. The producers cannot segment geographically distinct markets. It provides a complete characterization of the equilibrium (mixed) strategies and analyzes the pattern of competition for different tariffs. If a country raises its tariff, the profits of both producers increase, although the protected firm typically benefits more than its foreign counterpart. Growth in one market may reduce the profits of the firm located in the other market.

KW - Anti-dumping

KW - Commercial policy

KW - Imperfect competition

UR - http://www.scopus.com/inward/record.url?scp=21844520923&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=21844520923&partnerID=8YFLogxK

U2 - 10.1016/0167-7187(94)00443-6

DO - 10.1016/0167-7187(94)00443-6

M3 - Article

AN - SCOPUS:21844520923

SN - 0167-7187

VL - 13

SP - 67

EP - 87

JO - International Journal of Industrial Organization

JF - International Journal of Industrial Organization

IS - 1

ER -

Price competition between two international firms facing tariffs

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this