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Tariffication of Tariff Rate Quotas under oligopolistic competition: the case of the EU import regimes for bananas

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  • Scoppola, Margherita

Abstract

The paper develops a two-stage capacity constrained duopoly model, in which the mode of competition is endogenous and the constraint is flexible, to investigate the impact of Tariff Rate Quotas (TRQs) and their liberalization. The model predicts that the greater the gap between the price of the licences plus the in-quota tariff and the out-of-quota tariff, the closer the outcome of the game to the pure Cournot outcome. The tariff equivalent changes according to the prevailing mode of competition under the TRQ. The model is used to address the issue of the tariffication of the non-ACP TRQ for EU banana imports. The results suggest that under the TRQ firms competed on quantity and that the tariff equivalent is higher than the tariff introduced by the EU in 2006.

Suggested Citation

  • Scoppola, Margherita, 2008. "Tariffication of Tariff Rate Quotas under oligopolistic competition: the case of the EU import regimes for bananas," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44165, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44165
    DOI: 10.22004/ag.econ.44165
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    Cited by:

    1. Anania, Giovanni, 2010. "EU Economic Partnership Agreements and WTO negotiations. A quantitative assessment of trade preference granting and erosion in the banana market," Food Policy, Elsevier, vol. 35(2), pages 140-153, April.

    More about this item

    Keywords

    International Relations/Trade;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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