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02 新潟大学経済論集 = The journal of economics, Niigata University >

 

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Title :Export Subsidies and Timing of Decision-Making : An Extention to the Sequential-Move Game of Brander and Spencer (1985) Model (小澤健二教授・高津斌彰教授・西澤輝泰教授・林英機教授・平木俊一教授退職記念号)
Authors :Hamada, Kojun
Publisher :新潟大学経済学会
Issue Date :Mar-2007
Journal Title :新潟大学経済論集
Volume :82
Start Page :13
End Page :55
ISSN :0286-1569
Description :This paper examines how the timing of decision-making affects strategic trade policy. In this paper, we analyze the relationship between the different timing of decision-making by exporting firms and their subsidizing governments and its impact on export subsidy. The paper aims to extend the analysis of Brander and Spencer (1985) to include the Stackelberg competition and the sequential-move decision on the subsidy choice by governments. Some main results are presented as follows: First, when governments decide simultaneously the export subsidies in advance under the following Stackelberg quantity competition, the original leader firm produces as if it was the follower. Different from the Cournot model, under the Stackelberg model, the subsidy policy by the government that can subsidize the leader firm does not work effectively. Second, under the sequential-move game in which the government that can subsidize the leader firm decides its subsidy level first, the profit of the leader firm is less than that of the follower in the Stackelberg model, although the first-mover advantage of the government is maintained. The result proves that the timing of decision-making affects the results of the export subsidy policy significantly.
Keywords :export subsidy
sequential-move game
Stackelberg competition
Type Local :紀要論文
Language :eng
URI :http://hdl.handle.net/10191/5148
fullTextURL :http://dspace.lib.niigata-u.ac.jp/dspace/bitstream/10191/5148/1/4_0013.pdf
Appears in Collections:02 新潟大学経済論集 = The journal of economics, Niigata University

Please use this identifier to cite or link to this item: http://hdl.handle.net/10191/5148