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The role of technology security in a model of horizontal differentiation

Garcia-Alonso, Maria D C (2000) The role of technology security in a model of horizontal differentiation. International Journal of Industrial Organization, 18 (5). pp. 747-773. ISSN 0167-7187. (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:46974)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)

Abstract

The security concerns of exporters of products which might be used for military purposes have motivated different security regimes that limit the quality of the products exported by home firms. At the same time however, home governments want to ensure the competitiveness of their home companies. We analyze the optimal policy of a government facing such a trade off. We present a multistage model in which the government has the ability to commit to R&D subsidies but cannot credibly set its quality restrictions until the outcome of the R&D process is known. We show that, depending on whether some or all governments want to restrict the quality exported by the home firms, the optimal policy involves R&D subsidies or taxes together with ex post security restrictions.

Item Type: Article
Uncontrolled keywords: Strategic trade, export controls, arms trade.
Subjects: H Social Sciences
H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Maria Garcia-Alonso
Date Deposited: 29 Jan 2015 17:27 UTC
Last Modified: 29 May 2019 14:09 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/46974 (The current URI for this page, for reference purposes)
Garcia-Alonso, Maria D C: https://orcid.org/0000-0002-4457-3332
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