Perfect Equilibria in a Trade Liberalization Game.

S-Tier
Journal: American Economic Review
Year: 1990
Volume: 80
Issue: 3
Pages: 480-92

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The credibility of temporary protection is examined in a simple infinite horizon, perfect information game of timing in which the domestic government uses the threat of future liberalization to induce the domestic firm to invest. All pure strategy subgame-perfect equilibria are cyclical and, surprisingly, one of them implements optimal temporary protection. However, this equilibrium fails to pass another credibility criterion called "renegotiation-proof." The game has a unique stationary subgame-perfect equilibrium in mixed strategies. Copyright 1990 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:80:y:1990:i:3:p:480-92
Journal Field
General
Author Count
1
Added to Database
2026-01-25