cross ownership
Recently Published Documents


TOTAL DOCUMENTS

121
(FIVE YEARS 31)

H-INDEX

15
(FIVE YEARS 2)

2021 ◽  
pp. 1-11
Author(s):  
Junlong Chen ◽  
Zhiruo Zhang ◽  
Jiali Liu

Author(s):  
Luciano Fanti ◽  
Domenico Buccella

AbstractBy analysing interlocking cross-ownership, this work reconsiders the inefficiency of activist governments that set subsidies for their exporters (Brander and Spencer, J Int Econ 18:83–100). Making use of a third-market Cournot duopoly model, we show that the implementation of strategic trade policy in the form of a tax (subsidy) when goods are differentiated (complements) is Pareto-superior to free trade within precise ranges of firms’ cross-ownership, richly depending on the degree of product competition. These results challenge the conventional ones in which public intervention (1) is always the provision of a subsidy and (2) always leads to a Pareto-inferior (resp. Pareto-superior) equilibrium when products are substitutes (resp. complements).


Sign in / Sign up

Export Citation Format

Share Document