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AA00260492-19910002-0013.pdf
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Title |
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THE ROLE OF TARIFFS IN ENTRY PROMOTION AND DETERRENCE UNDER INTERNATIONAL OLIGOPOLY
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石橋, 孝次
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Kana |
イシバシ, コウジ
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Romanization |
ISHIBASHI, Koji
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Affiliation |
Agricultural Economics, THE KEIO ECONOMIC SOCIETY Keio University
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Keio Economic Society, Keio University
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1991
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Keio economic studies
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28
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2
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1991
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Start page |
13
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End page |
29
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Abstract |
We consider a situation where a domestic firm tries to enter the home and foreign markets which are monopolised by a foreign incumbent. The international entry game consists of the home and foreign governments' choices of import tariffs and the entry decision of the domestic firm with technological disadvantage. It is shown that the optimal use of import tariffs may lead to entry promotion or deterrence, depending on the parameters of the demands and costs functions. We also consider the welfare implications of the Nash tariff equilibrium.
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