Endogenous Vertical Restraints in International Trade
نویسندگان
چکیده
This paper examines interbrand competition between a domestic and a foreign manufacturer who market their products through intermediaries. The contracts manufacturers offer these intermediaries are endogenous. In equilibrium contracts may specify exclusive territories (ET), depending on the degree of substitutability between products and the level and degree of transparency of trade barriers. Trade liberalization, through lower or more transparent barriers, may lead manufacturers to use ET, thereby substituting private anti-competitive arrangements for governmentimposed barriers. This substitution may decrease competition and welfare, and thus create a role for competition policy in a freer trade environment. JEL Classification: F13, L42 Horst Raff Institut für Volkswirtschaftslehre Chrisitan-Albrechts-Universität zu Kiel Wilhelm-Seelig-Platz 1 24098 Kiel Germany e-mail: [email protected] Nicolas Schmitt Department of Economics Simon Fraser University 8888 University Drive Burnaby, B. C. V5A 1S6 Canada e-mail: [email protected]
منابع مشابه
Endogenous Vertical Restraints in International Trade 1
This paper examines interbrand competition between a domestic and a foreign manufacturer who market their products through intermediaries. The contracts manufacturers o¤er these intermediaries are endogenous. In equilibrium contracts may specify exclusive territories (ET), depending on the degree of substitutability between products and the level and degree of transparency of trade barriers. Tr...
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