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Market-Share Import Restraints in Oligopoly

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  • Denicolo, Vincenzo
  • Garella, Paolo G

Abstract

This paper contributes to the theoretical analysis of proportional import restraints; that is, restraints that are defined in terms of percentage market share rather than in terms of volume of imports. It is shown that an increase in the market share of foreign firms from zero has a negative effect locally on domestic welfare. In the case of a domestic oligopoly, domestic firms may prefer a proportional restraint over an equivalent volume restraint. Copyright 1999 by Blackwell Publishing Ltd.

Suggested Citation

  • Denicolo, Vincenzo & Garella, Paolo G, 1999. "Market-Share Import Restraints in Oligopoly," Review of International Economics, Wiley Blackwell, vol. 7(4), pages 732-743, November.
    • Handle: RePEc:bla:reviec:v:7:y:1999:i:4:p:732-43
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    Cited by:

    1. Ian Sheldon & Steve McCorriston, 2012. "Climate policy and border tax adjustments: Might industrial organization matter?," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 9(2), pages 7-28, Julio-Dic.
    2. Okumura, Yasunori, 2015. "Volume and share quotas in Cournot competition," Economic Modelling, Elsevier, vol. 47(C), pages 137-144.
    3. Aditya Bhattacharjea, 2000. "Foreign Entry and Domestic Welfare: Can "Market Discipline" Be Excessive?," Working papers 83, Centre for Development Economics, Delhi School of Economics.

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