Publisher Summary This chapter focuses on the concept of strategic trade policy. The
analysis of strategic trade policy is part of a broader research agenda that has been very …

World trade is governed by the rules of the World Trade Organization (WTO), the successor
to the General Agreement on Tariffs and Trade (GATT). The WTO sets rules of conduct for …

The WTO has delivered policy outcomes that are very different from those likely to emerge
out of the recent wave of preferential trade agreements (PTAs). Should economists see this …

This paper develops a model of capacity-price competition in which the equilibrium outcome
ranges from the Bertrand to the Cournot outcome as capacity constraints become more …

We analyze a model of R&D alliance networks where firms are engaged in R&D
collaborations that lower their production costs while competing on the product market. We …

We analyze a model of oligopolistic competition with ongoing investment. Special cases
include incremental investment, patent races, learning by doing, and network externalities …

Large firms played a central role in the “new trade” models that became a major focus of
trade economists in the early 1980s. Subsequent literature for the most part kept imperfect …

Oligopoly models where prior actions by firms affect subsequent marginal costs have been
useful in illuminating policy debates in areas such as antitrust regulation, environmental …

This paper examines strategic trade and joint welfare maximizing incentives towards
investment in the quality of exports by an LDC and a developed country. Firms first compete …

Comparing the effect on private R&D investments of allowing firms to cooperate in R&D with
that of providing R&D subsidies reveals that in general the latter policy is more effective than …