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Strategic Trade Policy in a Cournot Oligopoly with Convex Cost

Foreign Trade Review (2025) 60(2) 226-232
DOI: 10.1177/00157325241266040
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Abstract

We provide a simple reason for export tax in a third-country model of strategic trade policy. We show that the optimal policy under Cournot competition could be export tax in the presence of convex production costs. This happens whether or not the import competing country imposes import tariff. JEL Codes: F12, F13

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APA

Mukherjee, A., & Sinha, U. B. (2025). Strategic Trade Policy in a Cournot Oligopoly with Convex Cost. Foreign Trade Review, 60(2), 226–232. https://doi.org/10.1177/00157325241266040

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