Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101685
Authors: 
Schulze, Günther G.
Koch, Karl-Josef
Year of Publication: 
1990
Series/Report no.: 
Diskussionsbeiträge: Serie II, Sonderforschungsbereich 178 "Internationalisierung der Wirtschaft", Universität Konstanz 116
Abstract: 
Tax competition of two countries for foreign direct investment is analyzed in a Bertrand-Edgeworth dyopoly model. In the Symmetrie case zero-taxation is the unique equilibrium in pure strategies. If assymmetries are introduced only e-equilibria will exist. However, if the tax rate applies to foreign direct investment as well as to domestic sources (i.e. players have an outside option) there is no equilibrium in pure strategies.
Document Type: 
Working Paper

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