摘要: Abstract This paper shows that demand elasticities and cost asymmetry are important determinants of strategic trade policy. In the symmetric case, direction intervention is critically dependent upon elasticity demand. Under unit elastic demand, free optimal under symmetry, a subsidy (tax) if exporting firm has lower (higher) marginal than its competitor. If both governments intervene, then conventional result gets higher reversed for inelastic However, such an equilibrium unstable in policy space.
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