Information and disclosure in strategic trade policy

A-Tier
Journal: Journal of International Economics
Year: 2008
Volume: 75
Issue: 1
Pages: 229-244

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We relax the standard assumption in the strategic trade policy literature that governments possess complete information about the economy. Assuming instead that governments must obtain information from firms, we examine firms' incentive to disclose information to the governments in the Brander-Spencer setting. With quantity competition, we find firms disclosing both demand and cost information, thereby justifying the literature's omniscient-government assumption. With price competition, however, firms have no incentives to disclose demand or cost information, so governments remain uninformed. Further, with quantity competition and unknown demand, governments are caught in an informational prisoner's dilemma.

Technical Details

RePEc Handle
repec:eee:inecon:v:75:y:2008:i:1:p:229-244
Journal Field
International
Author Count
2
Added to Database
2026-01-25