Tariffs, Quotas, and International Oligopoly

K.C. Fung

Oxford Economic Papers, 1989, vol. 41, issue 4, 749-57

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.

Date: 1989
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