Partial collusion and foreign direct investment

Book English OPEN
Collie, David; Norman, George; Cardiff University;
  • Publisher: Cardiff University
  • Subject: HB

We show that the static duopoly model in which firms choose between exporting and foreign direct investment is often a prisoners’ dilemma game in which a switch from exporting to foreign direct investment reduces profits. By contrast, we show that when the game is repea... View more
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