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Optimal Quotas, Price Competition And Products' Attributes

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  • Nicolas Boccard
  • Xavier Wauthy

Abstract

We characterize the Nash equilibrium in the Hotelling model in the presence of an import quota. The optimal quota is identified and shown to be invariant to the mode of competition. We also prove that in the presence of a quota maximal differentiation is not achieved at equilibrium.

Suggested Citation

  • Nicolas Boccard & Xavier Wauthy, 2003. "Optimal Quotas, Price Competition And Products' Attributes," The Japanese Economic Review, Japanese Economic Association, vol. 54(4), pages 395-408, December.
    • Handle: RePEc:bla:jecrev:v:54:y:2003:i:4:p:395-408
    DOI: 10.1111/1468-5876.t01-1-00066
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    1. Boccard, N. & Wauthy, X., 1998. "Import Restraints and Quality Choice Under Vertical Differentiation," LIDAM Discussion Papers IRES 1998008, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Pinelopi Koujianou Goldberg & Frank Verboven, 2001. "The Evolution of Price Dispersion in the European Car Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(4), pages 811-848.
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    Cited by:

    1. Paul Belleflamme & Pierre M. Picard, 2007. "Piracy and Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 351-383, June.
    2. repec:ebl:ecbull:v:12:y:2005:i:11:p:1-8 is not listed on IDEAS
    3. Xavier Wauthy & Nicolas Boccard, 2005. "Equilibrium payoffs in a Bertrand-Edgeworth model with product differentiation," Economics Bulletin, AccessEcon, vol. 12(11), pages 1-8.

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