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ALTERNATIVE OLIGOPOLISTIC STRUCTURES IN INTERNATIONAL COMMODITY MARKETS: PRICE OR QUANTITY COMPETITION? AgEcon
Carter, Colin A.; MacLaren, Donald.
It has been shown in new trade theory that trade taxes/subsidies may be optimal in the case of oligopolistic markets. This result has relevance for international commodity markets because there is growing evidence of imperfect competition in commodity trade. However, it has also been demonstrated that the optimal strategic trade policy depends on whether the market is distinguished by Bertrand (price) or Cournot (quantity) competition. We argue that commodity markets may be characterised by either form of imperfect competition and also by product differentiation. As an illustration, we present a set of models of the Japanese market for beef imports in which account is taken of various forms of strategic interaction between Australian and United States...
Tipo: Working or Discussion Paper Palavras-chave: Strategic trade theory; Imperfect competition; Oligopolistic international commodity markets; International Relations/Trade.
Ano: 1994 URL: http://purl.umn.edu/51223
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