Journal article
Endogenous Transfer Prices, Tariffs, and a Host Country Duopoly
The International trade journal, v 14(2), pp 169-199
01 Jul 2000
Abstract
This article examines the impact of transfer-price effects on the interaction between a multinational firm and a domestic duopolist in the presence of resale-price restraints. The transfer-price effects have a direct impact on the strength of the strategic relationship between the multinational firm and the domestic firm. The transfer-price effect may give rise to an "anti-protective" tariff increase, wherein an increase in the tariff rate increases optimal host-country sales of the multinational firm and reduces the optimal sales level of the domestic firm. These results are valid with Cournot quantity-competition as well as a Stackelberg duopoly with either firm as the leader.
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1 citations in Scopus
Details
- Title
- Endogenous Transfer Prices, Tariffs, and a Host Country Duopoly
- Creators
- Vibhas Madan
- Publication Details
- The International trade journal, v 14(2), pp 169-199
- Publisher
- Taylor and Francis
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business
- Scopus ID
- 2-s2.0-85023883318
- Other Identifier
- 991019174555604721