Capacity, entry, and forward induction

Article Abstract:

Introduction of avoidable fixed costs into Dixit's model of entry deterrence were studied. Results showed that capacity of investment may turn into a liability if it makes shut down more plausible than large output. A firm's ability to strengthen its hold on the market may be hindered by the ability of a rival to choose a more feasible post-entry market-capturing strategy. Deterring the entrant's strategy would force a reduction on the incumbent's initial capacity investment. The larger the extent of which fixed costs are avoided the greater the need to reduce the incumbent's capacity investment.

Analysis, Capital investments, Overhead costs

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An economic theory of GATT

Article Abstract:

The foundational principles of the General Agreement on Tariffs and Trade (GATT) are interpreted and evaluated by a unified theoretical framework. A general equilibrium trade model represented government preferences consistent with national income maximization. Allowance was also given for the possibility of distributional concerns. The results of the evaluation showed that GATT's ability to deliver efficient multilateral outcomes is undermined by preferential agreements.

International Affairs, General Agreement on Tariffs & Trade, International trade, Commercial treaties, Trade agreements

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The WTO as a mechanism for securing market access property rights: implications for global labor and environmental issues

Article Abstract:

Research is presented describing the role of the World Trade Organization in contributing to the economic progress of both developing and developed countries.

Research, Economic research, World Trade Organization, Environmental economics

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