International duopoly with unknown costs

Ferreira, Fernanda A.; Pinto, Alberto A.

http://hdl.handle.net/10400.22/7355

Use this identifier to reference this record.

Name:	Description:	Size:	Format:
COM_FernandaAFerreira_2007_6.pdf		120.23 KB	Adobe PDF	Download

Send Feedback

Authors

Ferreira, Fernanda A.

Pinto, Alberto A.

Abstract(s)

We consider two firms, located in different countries, selling the same homogeneous good in both countries. In each country there is a non negative tariff on imports of the good produced in the other country. We suppose that each firm has two different technologies, and uses one of them according to a certain probability distribution. The use of either one or the other technology affects the unitary production cost. We analyse the effect of the production costs uncertainty on the profits of the firms and also on the welfare of the governments.