Export Cartel and Consumer Welfare

15 Pages Posted: 24 Jan 2019

See all articles by Arijit Mukherjee

Arijit Mukherjee

University of Nottingham - School of Economics

Uday Bhanu Sinha

Indian Statistical Institute

Date Written: February 2019

Abstract

The purpose of this paper is to show that export cartels are not necessarily harmful for consumers in the importing countries. Using a strategic trade policy model, we show that, contrary to the harmful effect, product‐market cooperation benefits consumers by affecting the trade policies. We further show that consumers in the importing countries are affected adversely if cooperation is among the governments of the exporting countries, instead of the exporting firms.

Suggested Citation

Mukherjee, Arijit and Sinha, Uday Bhanu, Export Cartel and Consumer Welfare (February 2019). Review of International Economics, Vol. 27, Issue 1, pp. 91-105, 2019, Available at SSRN: https://ssrn.com/abstract=3320768 or http://dx.doi.org/10.1111/roie.12362

Arijit Mukherjee (Contact Author)

University of Nottingham - School of Economics ( email )

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Uday Bhanu Sinha

Indian Statistical Institute ( email )

203 B. T. Road
Kolkata, West Bengal 700108
India

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