Should governments help winners or losers?
Working paper
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http://hdl.handle.net/11250/163102Utgivelsesdato
2007-10Metadata
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- Discussion papers (SAM) [655]
Sammendrag
One central result in the strategic trade literature is that governments
should not support domestic ”losers” but domestic ”winners”.
We show that when first-mover advantages are taken into account, the
reverse holds, governments have stronger incentives to support domestic
”losers” that face foreign ”winners”. Accordingly, governments can
play Stackelberg against foreign Stackelberg leaders to prevent them from playing Stackelberg against domestic Stackelberg followers.
Utgiver
Norwegian School of Economics and Business Administration. Department of EconomicsSerie
Discussion paper2007:30