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Title: Regulatory protection when firms move first
Authors: Edwards, T. Huw
Keywords: Research and development
Spillovers
Trade
Protection
Issue Date: 2009
Publisher: © Loughborough University
Series/Report no.: Loughborough University. Department of Economics. Discussion Paper Series;WP 2009 - 19
Abstract: I investigate the imposition of a horizontal technical barrier to trade (HTBT) in a symmetric, cross-hauling duopoly. Tariffs and subsidies are ruled out, but, in the absence of a mutual recognition agreement, it is possible for governments to impose HTBTs, so long as firms apply different technologies. If firms are first movers, this possibility may induce them to avoid technical collaboration, in order to tempt governments into creating local monopolies, except where spillovers and R&D effects are high. This exacerbates the costs of regulatory protection, compared to standard models without R&D or spillovers.
Description: This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2009_19.html
Version: Published
URI: https://dspace.lboro.ac.uk/2134/5777
ISSN: 1750-4171
Appears in Collections:Working Papers (Economics)

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