Endogenous Lobbying Positions
Year: 2008
Type: article
Abstract: A two-country, two-firm model has been developed to study equilibrium lobbying positions in intra-industry trade. A firm chooses either a protectionist position or a free-trader position. The model predicts that taking the free-trader (protectionist) lobbying position is an efficient (inefficient) firm's dominant strategy. In addition, for any lobbying position taken by a firm, its lobbying effort always decreases as its production cost increases. The findings help shed light on some empirical observations.
Author: Larry D. Qiu
Institution: University of Hong Kong
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2152790802