Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper examines the optimal trade policy for exporting firms in oligopolistic industries. The analysis is based on a minimum set of restrictions on the profit functions and with an arbitrary number of domestic and foreign producers. In an industry with quantity competition, a simple rule is derived that shows how to determine the direction of an optimal trade policy in terms of a few characteristics of the model. The analysis makes clear how scale economies (in a particular sense) favor the case for an export subsidy, while product differentiation tends to support the case for an export tax. Copyright 1994 by Royal Economic Society.