Criticisms of the Brander-Spencer model include all except which of the following?

Question

Quizplus · Accepted Answer

The Brander and Spencer model is criticized for several reasons, including the problems of insufficient information, likely foreign retaliation, adverse effects of trade policy politics, and simultaneously causing harm to other industries. However, the model is not typically criticized for causing harm to the interests of consumers, as it assumes that consumers are rational and will still benefit from the lower prices that result from increased competition.

Criticisms of the Brander-Spencer Model Include All Except Which of the Following