The scope for strategic asymmetry under international rivalry
Type of content
Journal Article
UC permalink
Publisher's DOI/URI
Thesis discipline
Degree name
Publisher
Elsevier BV
Journal Title
Journal ISSN
Volume Title
Language
en
Date
2022
Authors
Gilbert J
Oladi R
Koska, Onur A.
Abstract
In the context of a model of international trade through reciprocal dumping with horizontally differentiated goods, we study the endogenous choice of quantities and prices as strategic variables. We show that while a Cournot outcome prevails under conditions of export rivalry, strategic asymmetry under foreign direct investment rivalry may be observed, especially when it is possible to initially deter FDI by committing to a price contract, and when switching is costly and/or takes time.
Description
Citation
Gilbert J, Koska OA, Oladi R (2022). The scope for strategic asymmetry under international rivalry. International Review of Economics & Finance.
Keywords
Exports vs. FDI, Horizontal Product Differentiation, Cournot-Bertrand-Nash Equilibrium
Ngā upoko tukutuku/Māori subject headings
ANZSRC fields of research
Fields of Research::38 - Economics::3803 - Economic theory
Fields of Research::35 - Commerce, management, tourism and services::3502 - Banking, finance and investment::350203 - Financial econometrics
Fields of Research::35 - Commerce, management, tourism and services::3502 - Banking, finance and investment::350203 - Financial econometrics
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