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Auction Quotas with a Foreign Duopoly

Author

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  • Ms. Ling H Tan

Abstract

This paper uses a partial equilibrium framework to compare the welfare consequences of different methods of quota administration relative to free trade under imperfect competition. It shows that a country importing a good from foreign duopolists may improve its welfare by setting a quota at the free trade quantity and giving a fraction of the quota licenses to the duopolists while auctioning off the rest.

Suggested Citation

  • Ms. Ling H Tan, 2000. "Auction Quotas with a Foreign Duopoly," IMF Working Papers 2000/065, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2000/065
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