 Brander–Spencer model

The Brander-Spencer model is a seminal economic model that addresses issues of strategic trade theory, particularly in the context of international competition and government intervention. Developed by James Brander and Barbara Spencer in their 1983 paper, the model explores how government subsidies can affect the competitive dynamics between firms in international markets. ### Key Features of the Brander-Spencer Model: 1. **Market Structure**: The model typically examines an oligopolistic market where a small number of firms dominate.