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Competitio

Évf. 20 szám 1-2 (2021)
Tanulmányok

A Conjectured Cournot Duopoly Model for the EU–US Automobile Trade: A Game Theoretic Analysis of the TTIP’s Most Traded Product

Megjelent:
November 30, 2021
DOI Linkhttps://doi.org/10.21845/comp/2021/1-2/5
Szerző
Kovács Eszter
Megtekintés
en
Kulcsszavak
game theory duopoly model trade policy free trade agreements
Licenc

Copyright (c) 2021 Eszter Kovács

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How To Cite
Kiválasztott formátum: APA
Kovács, E. (2021). A Conjectured Cournot Duopoly Model for the EU–US Automobile Trade: A Game Theoretic Analysis of the TTIP’s Most Traded Product. Competitio, 20(1-2), 48-70. https://doi.org/10.21845/comp/2021/1-2/5
Beküldött 2021-02-17
Elfogadott 2021-06-18
Publikált 2021-11-30
Absztrakt

Economic actors, in their interactions with each other, certainly make decisions which are able to improve their original situation. In the case of free trade agreements, tariffs have the effect to manipulate countries’ trade and welfare. In this paper, we try to estimate the impacts of the Transatlantic Trade and Investment Partnership (TTIP) on the profit level of participating countries in the context of the Cournot duopoly model. More specifically, we elaborate the most traded product (MTP) and determine the profit levels in the equilibrium regarding two scenarios (pre and post situations of the TTIP). The findings suggest that the Cournot model seems suitable since it illustrates the possible options and provides a guideline for the decision-making process. Based on the model, it can be shown at which point the highest benefit can be achieved for the participating economies (EU, US) i.e. how long it is worth for the parties to apply additional automotive tariffs.

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