American Economic Review Vol. 78 No. 1 1988
Counterfeit-Product Trade
Abstract
We analyze trade in both legitimate and counterfeit products. Domestic firms own trademarks and establish reputations for delivering high-quality products. Foreign suppliers export legitimate low-quality merchandise and counterfeits of domestic brand-name goods. Home consumers have rational expectations regarding counterfeiting. We describe the positive and normative effects of counterfeiting, and provide a welfare analysis of border inspection policy and of policy regarding the disposition of counterfeit goods that are confiscated at the border.
- Volume
- 78
- Issue
- 1
- Pages
- 59-75
- Sources
- bibtex:phds-export.bib