COST HETEROGENEITY, INDUSTRY CONCENTRATION AND STRATEGIC TRADE POLICIES

Authors
VANLONG N SOUBEYRAN A
Citation
N. Vanlong et A. Soubeyran, COST HETEROGENEITY, INDUSTRY CONCENTRATION AND STRATEGIC TRADE POLICIES, Journal of international economics, 43(1-2), 1997, pp. 207-220
Citations number
12
Categorie Soggetti
Economics
Journal title
Journal of international economics → ACNP
ISSN journal
00221996
Volume
43
Issue
1-2
Year of publication
1997
Pages
207 - 220
Database
ISI
SICI code
0022-1996(1997)43:1-2<207:CHICAS>2.0.ZU;2-F
Abstract
We show that if domestic firms do not have identical unit costs, then the interplay between the Herfindahl index of concentration and the el asticity of the slope of the demand curve is of major importance in th e determination of optimal trade policies. In some cases, the directio n of optimal policy is reversed.