2022
DOI: 10.1002/mde.3579
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Optimal trade policy and welfare in a differentiated duopoly

Abstract: This study considers a differentiated duopoly, including domestic and foreign enterprises, in trade, analyzes the impacts of product differentiation and productivity variance on equilibrium results, and explores the optimal trade policy in different competition modes. We find that differentiated products can boost the supply of foreign enterprises in a Cournot competition. In a home‐leading Stackelberg duopoly, increasing tariffs decreases consumer surplus but improves the home country's social welfare. The op… Show more

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Cited by 4 publications
(3 citation statements)
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“…Wang et al (2023) provide empirical evidence to examine the relationship between common institutional ownership and corporate misconduct and indicate that common institutional ownership can effectively inhibit corporate misconduct. Chen et al (2024) examine the joint effects of unilateral cross ownership and emission‐reduction technology sharing on environmental and social performance. Cho and Lee (2024) consider the role of cross ownership in the green delegation and environmental cooperation and show that coordination failures may improve social welfare if the cross ownership is higher and market competition is intensive.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Wang et al (2023) provide empirical evidence to examine the relationship between common institutional ownership and corporate misconduct and indicate that common institutional ownership can effectively inhibit corporate misconduct. Chen et al (2024) examine the joint effects of unilateral cross ownership and emission‐reduction technology sharing on environmental and social performance. Cho and Lee (2024) consider the role of cross ownership in the green delegation and environmental cooperation and show that coordination failures may improve social welfare if the cross ownership is higher and market competition is intensive.…”
Section: Literature Reviewmentioning
confidence: 99%
“…This paper uses the Stackelberg game to build the model, which is frequently used in the supply chain (Cai et al, 2016; Chen et al, 2022). Under the push supply chain setting, i.e., selling‐to‐the‐newsvendor model, the supplier who is the leader first sets a wholesale price w, and then the buyer who is the follower determines the order quantity.…”
Section: Modelmentioning
confidence: 99%
“…At the same time, blockchain technology can be adopted (from the first stage). Using the same theoretical as Chen et al (2022), we give relevant Stackelberg game models, in which the manufacturer is the leader and the retailer is the follower. The manufacturer produces products and sells them to retailers in the first stage, remanufactures the used products while producing new products in the second stage, and then decides which market to sell to according to the manufacturing ability and the price of the internal and external markets.…”
Section: Introductionmentioning
confidence: 99%