Cascading Contingent Protection and Vertical Market Structure
Sleuwaegen, Leo Belderbos, Rene Jie A Joen, Clive
Sleuwaegen, Leo
Belderbos, Rene
Jie A Joen, Clive
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Publication Type
Journal article
Editor
Supervisor
Publication Year
1998
Journal
International Journal of Industrial Organization
Book
Publication Volume
16
Publication Issue
6
Publication Begin page
607
Publication End page
718
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Abstract
Cascading contingent protection may occur when protection of an upstream industry transfers injury to the downstream industry and increases the likelihood that this industry asks and receives protection. Cascading protection within a sequential petitioning model where the upstream industry acts as leader is examined. The analysis identifies market structure and the vertical linkage between the upstream and the downstream industry as important determinants of the occurrence of cascading protection. It is shown that the circumstances which make cascading protection more likely to occur also make it more likely that this protection has serious negative welfare consequences.
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Keywords
Industrial Organisation & EU Competition Policy