The scope for strategic asymmetry under international rivalry (2022)

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Type of Content
Journal ArticlePublisher
Elsevier BVISSN
1059-0560Language
enCollections
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.
Citation
Gilbert J, Koska OA, Oladi R (2022). The scope for strategic asymmetry under international rivalry. International Review of Economics & Finance.This citation is automatically generated and may be unreliable. Use as a guide only.
Keywords
Exports vs. FDI; Horizontal Product Differentiation; Cournot-Bertrand-Nash EquilibriumANZSRC Fields of Research
38 - Economics::3803 - Economic theory35 - Commerce, management, tourism and services::3502 - Banking, finance and investment::350203 - Financial econometrics
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