On the Equivalence of Content Protection Scheme and X-equivalent Tariff

Joysri Acharyya

Foreign Trade Review, 2016, vol. 51, issue 1, 1-12

Abstract: This article examines the welfare equivalence of alternative modes of protection for the domestic input producers in duopolistic environment when tariffication is adopted in the input tier. We use the definition of equivalence introduced by Vousden (1987). In contrast to Vousden (1987), we find that when the final good producers have Cournot conjectures, a content protection scheme (CPS) may be more efficient in respect of both protection and social welfare compared to the X-equivalent tariff or not depending on the value of the parameters.

Keywords: Protection; CPS; Cournot conjecture; Tariff; X-equivalent tariff (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:fortra:v:51:y:2016:i:1:p:1-12

DOI: 10.1177/0015732515614435

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