Abstract
We study the possibility of cartel formation among primary exporters who face an inelastic world demand for their exports. The phenomenon of immiserizing export growth appears as a non-cooperative equilibrium in a two-country export game. With infinite repetitions of the one shot game, we show that `different country size' will be detrimental to the sustenance of the collusive behavior needed for eliminating the possibility of immiserization.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have