A Game Theoretical Approach on the Export Restriction : The Case of International Rice Trade

This paper investigates the export price elasticity with respect to export supply function in the world rice market and also analyzes the effects of rice export restriction under oligopolistic competition. Using annual data from 1980 to 2005, the empirical procedure of export supply function utilizes Ordinary Least Square (OLS) which includes explanatory variable of rice export volumes and dependent variables of rice export prices, total productions, and economic growth. The results can verify the market structure of the world rice market. Furthermore, the game theoretical procedure illustrates the optimal thresholds of rice export restriction under Cournot and Stackelberg competitiveness.