The effects of a content requirement on a foreign duopsonist
Abstract
This paper considers the operation of a local content requirement in a duopsony between domestic and foreign firms and demonstrates its consequences for the domestic producer of a final good. It is shown that content protection may have perverse effects on a foreign firm's profits and may be welfare-improving overall, shifting profits from the domestic firm to both the foreign firm and domestic input producers.
Description
Keywords
Citation
Collections
Source
Journal of International Economics