Arbeitspapier

Market Entry Regulation and International Competition

As a part of their industry or competition policies governments decide whether to allow for free market entry of firms or to regulate market access. We analyze a model where governments (ab)use these policy decisions for strategic reasons in an international setting. Multiple equilibria of this game emerge; and if the cost difference between domestic and foreign firms is ‘significant‘, all equilibria induce the same allocation, where production exclusively takes place in the cost-efficient country. Moreover, these equilibria are Pareto efficient if this cost difference is ‘substantial‘. Only if cost differences are ‘insignificant‘, may production take place in both countries in equilibrium.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 979

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Production, Pricing, and Market Structure; Size Distribution of Firms
Economics of Regulation
Thema
intergovernmental competition
competition policy
entry regulation
free market entry
international trade

Ereignis
Geistige Schöpfung
(wer)
Upmann, Thorsten
Stähler, Frank
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2003

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Upmann, Thorsten
  • Stähler, Frank
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2003

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