3,020 research outputs found

    When Government Misleads US: Sending Misinformation as Protectionist Devices

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    In this paper, we examine the incentive of the home government to mislead home consumers by sending misinformation. We nd that positive misinformation on home products and negative misinformation on foreign products always increases the prot of the home rm, while when the marginal costs of home and foreign rms are the same, a small amount of positive misinformation decreases the consumer surplus. Moreover, when the home government maximizes home welfare, it chooses to send positive misinformation on the home product and negative misinformation on the foreign product. The stronger is the competition faced by the home rm, the greater is the amount of negative misinformation on the foreign product. By contrast, the optimal amount of misinformation on each product used to maximize world welfare is positive. We also demonstrate that trade liberalization can increases the incentive of the home government to send misinformation.Strategic misleading, misinformation, non-tari trade policies

    Determinants of Trade in Recyclable Wastes between Developing and Developed Countries

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    This paper examines the trade volume of recyclable wastes. In particular, we analyze the trade from developed countries to developing countries. The reason is that, when a recycling process is separated from the production process of final goods or/and the consumption process, it would be located in the labor-abundant (i.e., less developed developing) countries. Then, the environmental and health problems might become serious in developing countries. The relationship between the wages and the volume of imports is our focus. We demonstrate that, the higher the wage/per capita income of a developing country, the more recyclable wastes it imports. This implies that there is no evidence for a pollution haven in the sense that the dirty recycling sectors expand in the less developed developing countries more rapidly than the more developed developing countries. Furthermore, we discuss the possibility that the trade restriction for reducing environmental damage is accompanied by a significant loss in efficiency.trade and recycling, recyclable wastes, gravity model

    Misleading Advertising in Duopoly

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    In this paper, we build a model of strategic misleading advertising in duopolistic markets with horizontal product differentiation and advertising externality between firms. We investigate the effects of regulating misinformation on market competition, behavior of firms, and social welfare. We show that the degree of advertising externality and the magnitude of advertising costs are crucial for determining the welfare effects of several regulations, including prohibiting misleading advertising, educating consumers, taxing production, and taxing misleading advertising. We then extend the model by introducing two types of heterogeneities; heterogeneous consumers and heterogeneous production costs between firms.Misleading Advertising, Regulation; Duopoly, Product Differentiation, Advertising Externality

    Strategic Use of Recycled Content Standards under International Duopoly

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    We examine the strategic use of recycled content standards (RCSs) under international duopoly. RCSs require firms supplying the domestic market to use a certain proportion of recycled materials as inputs. We demonstrate that, when there is no trade in recycled materials, two identical countries both set strategically stricter or more lax RCSs. However, when there is trade in recycled materials, it may be the case that one country sets a stricter RCS while the other sets a more lax RCS. When a world supply constraint on recycled materials is not binding, the main source of the asymmetric distortion in RCSs is a demand effect for recycled materials.recycling, recycled content standard, international trade, strategic trade policy

    On Efficiency of Individual Transferable Quotas (ITQs) through Reduction of Vessels

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    This paper theoretically examines whether an individual transferable quotas (ITQs) regime can achieve the long-run efficiency through the reduction of vessel numbers. Assuming the existence of two types of vessels in terms of their scales, we consider not only quota transactions but also the exit of fishers. Changes in vessel sizes of incumbent fishers are also taken into consideration. We find that when large-scale vessels are more efficient than small-scale vessels, the long-run efficiency is achieved only with an ITQ regime. However, when small-scale vessels are more efficient than large-scale vessels, the long-run efficiency is not achieved; the number of vessels becomes too few compared to when the total harvesting cost is minimized.Efficient fishery, fishery management, individual transferable quotas, quota transaction, vessel scale.

    Determinants of Trade in Recyclable Wastes between Developing and Developed Countries

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    This paper examines the trade volume of recyclable wastes. In particular, we analyze the trade from developed countries to developing countries. The reason is that, when a recycling process is separated from the production process of final goods or/and the consumption process, it would be located in the labor-abundant (i.e., less developed developing) countries. Then, the environmental and health problems might become serious in developing countries. The relationship between the wages and the volume of imports is our focus. We demonstrate that, the higher the wage/per capita income of a developing country, the more recyclable wastes it imports. This implies that there is no evidence for a pollution haven in the sense that the dirty recycling sectors expand in the less developed developing countries more rapidly than the more developed developing countries. Furthermore, we discuss the possibility that the trade restriction for reducing environmental damage is accompanied by a significant loss in efficiency.trade and recycling, recyclable wastes, gravity model
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