IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v24y1991i3p693-702.html
   My bibliography  Save this article

Optimum Discriminatory Tariffs under Oligopolistic Competition

Author

Listed:
  • Hong Hwang
  • Chao-Cheng Mai

Abstract

This paper attempts to present a simple Cournot model to determine the optimal discriminatory tariff rates, when the international market is a homogeneous (heterogeneous) product market. In the model, there are two foreign firms located in two different countries competing for sales in a local market. When the firms sell a homogeneous product and the home country can impose differential tariffs on imports from different countries, then the tariff on the low-cost producer should be hgher. In particular, with constant marginal costs the tariff difference should equal half the cost difference. On the other hand, if the firms sell differentiated products with symmetric linear demands and technologies, then the weaker the degree of product differentiation, the greater is the tariff difference compared with the cost difference.

Suggested Citation

  • Hong Hwang & Chao-Cheng Mai, 1991. "Optimum Discriminatory Tariffs under Oligopolistic Competition," Canadian Journal of Economics, Canadian Economics Association, vol. 24(3), pages 693-702, August.
    • Handle: RePEc:cje:issued:v:24:y:1991:i:3:p:693-702
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0008-4085%28199108%2924%3A3%3C693%3AODTUOC%3E2.0.CO%3B2-G
    Download Restriction: only available to JSTOR subscribers
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:24:y:1991:i:3:p:693-702. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.