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Tariffs, Quotas, and International Oligopoly

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  • Fung, K C

Abstract

This paper compares the effects of tariffs and quotas in the presence of quantity-setting international duopolists. With the Cournot-Nash case, a tariff is equivalent to a quota; but with the Stackelberg and consistent conjecture cases, a quota will induce a switching of the domestic conjectural variation and is found to be not equivalent to a tariff. Copyright 1989 by Royal Economic Society.

Suggested Citation

  • Fung, K C, 1989. "Tariffs, Quotas, and International Oligopoly," Oxford Economic Papers, Oxford University Press, vol. 41(4), pages 749-757, October.
    • Handle: RePEc:oup:oxecpp:v:41:y:1989:i:4:p:749-57
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    Citations

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    Cited by:

    1. Ian M. Sheldon, 2021. "Reflections on a Career as an Industrial Organization and International Economist," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 468-499, June.
    2. Dominik Egli & Frank Westermann, 2001. "On the Welfare Equivalence of Tariffs and Quotas under Duopoly," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 137(II), pages 171-182, June.
    3. Ning, Haokai, 2020. "On the Equivalence of Tariffs and Quotas with Incomplete Information," MPRA Paper 101512, University Library of Munich, Germany.
    4. Gelves, Alejandro & McGinty, Matthew, 2016. "International environmental agreements with consistent conjectures," Journal of Environmental Economics and Management, Elsevier, vol. 78(C), pages 67-84.
    5. Ryuzo Sato & Rama Ramachandran & Shunichi Tsutsui, 1991. "Incomplete Appropriability of R&D and the Role of Strategies and Cultural Factors in International Trade: A Japanese Case," NBER Working Papers 3797, National Bureau of Economic Research, Inc.
    6. Holloway, Garth J., 1995. "Conjectural Variations With Fewer Apologies," Working Papers 225880, University of California, Davis, Department of Agricultural and Resource Economics.
    7. S. McCorriston & I. M. Sheldon, 1992. "Policy‐Induced Capacity Constraints And Strategic Interaction In Processed Food Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 149-159, May.
    8. Giorgos Stamatopoulos, 2021. "Bidding for tariff exemptions in international oligopolies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(3), pages 515-532, June.
    9. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Tariffs, quotas and terms-of-trade: The case of New Zealand," Journal of International Economics, Elsevier, vol. 46(2), pages 313-332, December.
    10. Chen, Fang-Yueh, 2023. "Trade warfare and sanctions in vertically related markets," Economic Modelling, Elsevier, vol. 121(C).
    11. Chen, Hung-Yi & Chang, Yang-Ming & Chiou, Jiunn-Rong, 2011. "A welfare analysis of tariffs and equivalent quotas under demand uncertainty: Implications for tariffication," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 549-561, October.
    12. Okumura, Yasunori, 2015. "Volume and share quotas in Cournot competition," Economic Modelling, Elsevier, vol. 47(C), pages 137-144.
    13. Toshihiro Matsumura & Yasunori Okumura, 2014. "Comparison between specific taxation and volume quotas in a free entry Cournot oligopoly," Journal of Economics, Springer, vol. 113(2), pages 125-132, October.
    14. Nagurney, Anna & Besik, Deniz & Li, Dong, 2019. "Strict quotas or tariffs? Implications for product quality and consumer welfare in differentiated product supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 136-161.
    15. Matthew McGinty, 2021. "Rational conjectures and evolutionary beliefs in public goods games," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(6), pages 1130-1143, December.
    16. Hong Hwang & Cheng-Hau Peng & Hsiu-Ling Wu, 2013. "Tariffication and Welfare in a Differentiated Duopoly," The World Economy, Wiley Blackwell, vol. 36(7), pages 899-911, July.

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