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Revisiting Strategic Protectionism in Network Markets

Hashimzade, Nigar et al.
arXiv (All) · Papers
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theoretical-economics
This paper studies the welfare effects of an industrial policy targeting a sector with network externalities in a two-country model with strategic trade and R&D investment. When externalities are weak or the goods are close substitutes, the business-stealing effect dissipates more surplus than the e
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