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Import Quotas and Entry Deterrence

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  • Neil Campbell

Abstract

Using a simple version of the Milgrom and Roberts entry deterrence model, it is shown that adjusting a quota so that a greater volume of imports is allowed, can facilitate entry into the domestic industry. That is, the easing of a quota, can cause the domestic incumbent to shift from deterring entry to accommodating entry.

Suggested Citation

  • Neil Campbell, 2000. "Import Quotas and Entry Deterrence," Australian Economic Papers, Wiley Blackwell, vol. 39(2), pages 152-158, June.
    • Handle: RePEc:bla:ausecp:v:39:y:2000:i:2:p:152-158
    DOI: 10.1111/1467-8454.00082
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    Cited by:

    1. Martin Theuringer & Pia Weiß, 2001. "Do Anti-Dumping Rules Facilitate the Abuse of Market Dominance?," IWP Discussion Paper Series 03/2001, Institute for Economic Policy, Cologne, Germany.

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