Implementing results-oriented trade policies: the case of the US-Japanese auto parts dispute

Kala Krishna, John Morgan

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share target may be implemented with fairly weak informational and administrative requirements. Moreover, such policies can be both pro-competitive and advantageous to US firms.

Original languageEnglish (US)
Pages (from-to)1443-1467
Number of pages25
JournalEuropean Economic Review
Volume42
Issue number8
DOIs
StatePublished - Sep 1 1998

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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