Wasteful Imports Due to Domestic Monopoly in a Spatially Differentiated Market

Klaus Stegemann

Working Paper from Economics Department, Queen's University

Abstract: In a spatially differentiated market the actual rate of importation, in the absence of government intervention, exceeds the socially optimal rate for two reasons: either domestic production that would be socially advantageous may not be viable at all from a private point of view, or an existing import-competing monopoly finds it profitable to serve less than the socially optimal market area.

Pages: 15
Date: 1981
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:427

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