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

Margherita Scoppola

No 44165, 2008 International Congress, August 26-29, 2008, Ghent, Belgium from European Association of Agricultural Economists

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.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Pages: 15
Date: 2008
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Citations: View citations in EconPapers (1)

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Working Paper: Tariffication of Tariff Rate Quotas under oligopolistic competition: the case of the EU import regimes for bananas (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae08:44165

DOI: 10.22004/ag.econ.44165

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